TL;DR
The Indian auto industry is seeking a 5% GST for Range-Extended Electric Vehicles, citing their equivalence with BEVs under new CAFE norms.
The Indian automotive industry is actively lobbying for a reduced Goods and Services Tax (GST) rate of 5% on Range-Extended Electric Vehicles (REEVs). This push comes as draft Corporate Average Fuel Economy (CAFE) norms are reportedly equating REEVs with Battery Electric Vehicles (BEVs), suggesting a need for a similar tax treatment to promote their adoption.
Industry stakeholders argue that a lower GST would make REEVs more affordable, encouraging consumers to transition to greener mobility options. REEVs offer a practical bridge for electrification, addressing range anxiety concerns while still significantly reducing emissions compared to conventional internal combustion engine vehicles.
