Gst -cuts make petrol bits cheaper -but EV -shares rise anyway

Copyright © HT Digital Streams Limit all rights reserved. T. Surendar 4 min read 17 Sept 2025, 03:25 PM IST, even when gst cut, chatted last month, the supplies of the two pure EV manufacturers rose. (Mint) Summary, even if GST cuts make petrol bits cheaper just before the festive season, bet investors on EV makers Ather and Ola, drawn by rising volumes and the potential to acquire market share of traditional two-wheelers. When India reduced tax on petrol two-wheelers this month, it must have been bad news for electric bicycle makers. Instead, their shares are on fire. As the Tax Board of Goods and Services announced changes to the tax on goods and services (GST) on the evening of September 3, the share prices of two listed electrical two-wheeler manufacturers and OLA Electric Mobility Ltd distant rose by 39% and 42% respectively. By contrast, shares of four leading internal combustion car (ICE) have two-wheeled business-Bajaj Auto Ltd, TVs Motor Co. Ltd., Hero Motocorp Ltd, and Eicher Motors Ltd-in the same period rose by 10.5-20%. This is despite the fact that electric vehicles (EVs) remained unchanged at 5% under the revised GST structure, while the two-wheelers of up to 350 cents were cut on ICE from 28% to 18%, from 22 September. The reduced GST is generally expected to lower the ice-wheeled prices and encourage the demand. “Obviously, the market EV businesses are rating again, as it is confident that customers will increasingly choose vehicles with batteries as opposed to the petrol-powered,” says Surjit Singh Arora, head (shares) at Barclay PMS. In FY24, Electric Tw healer sales affected 942,000 units, 30% higher than the previous year. Electric two -wheelers are still a small part of the total two -wheeler sales of 18 million units in FY24. Car supplies, especially two -wheeled makers, rose in the two weeks before the announcement, amid the anticipation of the cut. Since the launch of GST in July 2017, the industry has complained that lower-powered two-wheelers are taxed at 28%, a rate intended for luxury goods, making motorcycles and scooters unaffordable. With ice bikes below 350 cents selling 77% of the nearly 10 million two -wheelers in the first five months of FY26, the lower tax rate was seen as a demand for the festive season. Ice bikes get cheaper. The biggest Ice two-wheeled makers have now announced price cuts from September 22, when the new GST regime came into effect. The largest two-wheeler manufacturer Hero Motocorp Ltd has reduced prices by £ 7,000-14,000, while Eicher Motors Ltd, manufacturer of Royal Enfield Motorcycles, reduced prices at its top seller 349cc models by £ 12,200-19.600. “With the reduced prices, we can expect the growth of the sale of the current 6-7% of the two-wheeler segment to 9-10% this year,” says Arora. Usually, such price cuts will be expected to harm the demand for EV question: Electric two-wheelers are inherently more expensive than ice, and cheaper ice options should make EVs look relatively more expensive. But that didn’t happen. Even when GST cut, the chat turned last month, the shares of the two pure EV manufacturers rose -powered by the feeling that these stocks came down to the FY25 losses according to the analysts. Ola Electric Mobility Ltd, which hit a low of £ 40.8 in July, rose to £ 70 early this month and is now trading at £ 60, almost 50% higher. During this period, the share received an investment from investor Samir Arora, who bought a 2.09% stake in the company through Helios Mutual Fund. Ather Energy climbed from £ 349 to £ 569 on August 1, on the back of a boom in the trading volumes. The Helios fund also invested in Athther and in its promoter Hero Motocorp Ltd, which owns 30% of Ather. In an interview with CNBC TV18, which explained his investment in Ola Electric, Helios’ Arora said he expects the EV maker to eventually take away the share of existing players in the market. Certainly, both companies are still losses because they have loaded losses for the June finish as well as FY25. But Athther’s sales volumes have grown much faster than the overall two-wheeler industry, while Ola Electric has reduced costs over the past two quarters. Ola, who recently celebrated the production of 1 million vehicles, linked costs and showed affirmative actions in response to customers complaints. The company is expected to roll out its first electric motorcycle early next month. Athther’s sales volumes rose to 84,760 units from 48.136 a year ago in April. In August, Ola Electric regained second place in the EV space after clocking sales of 18,972 units. Although the August volumes fell by 31% compared to a year ago, they rose 6% successively. TVs car is currently the No.1 player in EV two-wheeler sales, while Bajaj Auto Ltd Number 3. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Auto Shares #GST RESET #GST Read next story