Hero Electric, Electortherm, Ajanta, the major companies which is leading the market in the electric bike segment may reduce the cost of their products in the range of Rs 2,500 to Rs 3,500 as the tax on these products are getting reduced.
Gujarat government's decision to reduce value added tax (VAT) on battery-operated two-wheeler seems to have started yielding results. Some of the big companies see prices of electric two wheelers in Gujarat coming down in the range of Rs 2,500 to Rs 3,500 as the electric bike makers in the state plan to pass on the benefit of reduced VAT to end users.
"Finally, the Gujarat government reduced the VAT on e-bikes following which the cost of the product will come down by Rs 2500-3000 per unit in the state," said Jaysukh Patel, managing director of Morbi-based Ajanta Group, which produces electric two wheeler under the brand name 'Oreva'.
At present, around 800-1000 e-bikes are sold every month in Gujarat. The decision has come at a time when electric two-wheeler industry is passing through rough patch as the demand is gradually dwindling.
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