At a recent industry event, TVS Motor Company Chairman highlighted how upcoming GST 2.0 reforms are designed to benefit India’s middle-income population, while also noting that government schemes have significantly driven electric vehicle (EV) adoption across the country.
GST 2.0 and Middle-Income Relief
The government is reportedly planning to rationalise GST rates to make essential and mass-market goods more affordable.
Middle-income buyers may see lower tax burdens on two-wheelers and other mass-market products.
This is expected to spur consumption and support the auto sector’s growth.
Government Schemes Boosting EV Sales
Incentives under FAME II, state subsidies, and lower GST on EVs (5%) have reduced ownership costs.
TVS, like other OEMs, has launched a range of electric scooters benefiting from these incentives.
EV penetration in India’s two-wheeler market has climbed steadily in 2024–25.
Industry Perspective
The TVS Chairman underscored that policy consistency and continued infrastructure investment—charging stations, battery supply chains—are essential to sustain the EV boom.
Implications for Consumers and Industry
Consumers: More affordable two-wheelers and EVs.
Industry: Higher volumes, faster shift to sustainable mobility, and clearer policy signals for investment.
Conclusion
With GST 2.0 aimed at easing the burden on middle-income groups and government schemes turbocharging EV adoption, the auto sector—especially two-wheeler manufacturers like TVS—could see robust growth in the coming years.
FAQ Section
Q1. What is GST 2.0?
A proposed rationalisation of GST rates to simplify taxes and reduce burden on essential and mass-market goods.
Q2. How does GST 2.0 affect two-wheeler buyers?
It could lower the effective tax rate on mass-market models, making them more affordable.
Q3. Which government schemes have boosted EV sales?
FAME II, state EV subsidies, lower GST on EVs, and tax benefits on loans for EV purchase.
Q4. What is TVS’s role in the EV market?
TVS has launched multiple electric scooters and is expanding its EV portfolio supported by government incentives.
Q5. Will EV growth continue?
If incentives and infrastructure development continue, EV adoption in India is expected to accelerate further.
Published on : 17th September
Published by : SMITA
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