In Budget 2019, the GST rate on electric vehicles war reduced from 12% to 5% which lead to the reduction in the EVs prices
Not much time passed when the Goods and Services tax council reduced the GST rate on electric vehicles as well as chargers. The GST was reduced from the previous 12% to the current 5% slab. This has resulted in the fall of prices of all-electric vehicles in the country.
Ather Energy, which is a Bangalore based electric scooter manufacturer, announced the benefit of GST cut on the EVs. Both the Ather scooters – 340 and 450 are now available at lesser price. Ather 450, which is the flagship scooter, is priced at Rs 1.13 lakh in Bangalore and Rs 1.22 lakh in Chennai. These prices are on-road in the respective city. The new price is about Rs 9,000 less than what it was with 12% GST rate.
Ather 340, on the other hand, now carries a price tag of Rs 1.02 lakh and 1.10 lakh in Bangalore and Chennai respectively. Price cut on 340 is around Rs 8,000. The company is currently taking bookings in Chennai and the deliveries to start from September2019.
With this GST rate cut move by the government, Ather can achieve its ambitious sales target of 1 lakh units by 2021. The folks at Ather are working overtime to launch the electric scooters in more cities by 2023. After Chennai, the company is targeting Metros like Mumbai, Hyderabad, Delhi NCR, Pune along with 30 others by 2023.
The closest rival to Ather electric scooters is Okinawa iPraise which is price at Rs 1.14 lakh ex-showroom. Further, with the GST cut, the iPraise is also expected to receive a price of about Rs 8,000-9,000 in the near future. Revolt RV400 which is going to launch at the end of this month will also be a capable rival to the Ather 450.
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