Mahindra & Mahindra Ltd. said India could see a large-scale shift towards electric three-wheelers because of the government's push to promote the battery-powered transport.
There's a gradual but dramatic shift of market volumes towards electric three-wheelers from their counterparts with internal combustion engines, Group Chief Financial Officer VS Parthasarathy told BloombergQuint during an interview. “We have an opportunity in India to do in three-wheelers what China has done in two-wheelers.”
India targets to turn at least 30 percent of vehicles electric by 2030 as it aims to cut reliance on fossil fuel and curb pollution. Budget 2019 allowed a deduction of interest of up to Rs 1.5 lakh on a loan taken to buy an electric vehicle between April 1, 2019 and March 31, 2023. The GST Council lowered rates on all electric vehicles from 12 percent to 5 percent and the rate on charging stations was reduced from 18 percent to 5 percent.
“The government's recent move to cut goods and services tax rates on electric vehicles will aid sales and give the required push for adoption of the technology,” Parthasarathy said.
Watch the full interaction here:
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