Indian auto major Mahindra hopes that the proposed Goods and Services Tax regime will not treat electric cars as luxury items. So, the vehicles should be taxed accordingly.
Mahesh Babu, CEO-designate of Mahindra Electric said, "We hope that the upcoming GST regime will not treat electric cars as luxury items and will not be taxed at high rates."
The initial cost of acquisition of electric cars is very high when compared to conventional vehicles in the same category. He told this to the reporters at the launch of ‘e2o Plus' yesterday.
He added, "The cost price of an electric car is pretty steep even after passing on the special incentive given by the government to the buyer. But the cost of ownership is very low."
He also said that the sole automobile company manufacturing electric cars in India has products in four categories with an approximate customer base of 6,000 to 7,000.
He said that the company had also reserved a variant of the model for fleet operators, which would have toned down features as compared to owner-driven cars.
Last year, there had been a growth of 53 percent in the sale of electric cars across the globe.