India’s EV industry might face headwinds due to the government’s proposal to reduce GST on small cars. This tax cut could impede the growth of the EV industry, according to a report from HSBC Investment Research. The report indicates that reducing GST on small cars could impact electric vehicle (EV) manufacturers. Lowering taxes on small cars could reduce the price advantage EVs currently have, which could decelerate the expansion of the EV sector. Under the proposed GST regime, the government plans to eliminate two tax slabs, removing the 12% and 28% slabs.
