Budget wishlist: Mercedes-Benz India expects long-term GST plan on EVs

Currently, all electric vehicles (EVs) benefit from a concessional GST rate of five per cent, while vehicles running on internal combustion engines (ICE) are charged a 28 per cent GST

Mercedes-Benz India hopes the Budget on Thursday will give a long-term plan on the goods and service tax (GST) on electric cars for the auto companies to plan their investments accordingly, its Managing Director and Chief Executive Officer Santosh Iyer told Business Standard on Wednesday.

Currently, all electric vehicles (EVs) are charged a concessional GST rate of five per cent. Vehicles that run on internal combustion engines (ICE) are charged a 28 per cent GST.

The German carmaker, which dominates the luxury car market in the country, achieved a 10 per cent year-on-year (Y-o-Y) growth, reaching 17,408 units in 2023.