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EV momentum fades after GST 2.0 as ICE price cuts steal demand
Economy
Published on 24 April 2026
GST tweaks made petrol and diesel cheaper, and EV adoption cooled
EV penetration in India is losing steam for cars, two-wheelers, and three-wheelers after GST rates for internal combustion engine vehicles were reduced under GST 2.0. As ICE models become more price-competitive, buyers are shifting away from EVs—despite new launches like Maruti’s eVitara. The result is slower EV adoption across multiple segments.
- GST 2.0 rate cuts for ICE vehicles improved their price competitiveness
- EV penetration has softened across cars, two-wheelers, and three-wheelers
- Demand shifts appear to favor cheaper ICE options in the near term
- Maruti’s eVitara highlights ongoing EV push even as momentum lags
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times