Indian Prime Minister Modi’s August 15, 2025, announcement unlocking GST reform—reducing tax slabs to just 5% and 18%, with a 40% luxury tier—has set off waves across industries, most notably in automobiles. But where does this leave Tesla—still an import-only luxury EV brand in India? GST Rate Cut 2025: Modi’s Independence Day Announcement & Its Impact on Car, Bike and EV Prices in India 🚘⚡ "Tesla Finally Lands in India: Model Y Debuts at ₹59.9 Lakh—What It Means for the EV War!" GST Reforms at a Glance: Proposed shift from multiple GST slabs to two primary rates: 5% (essentials) and 18% (standard goods) , plus a 40% slab for luxury/sin goods . GST on small cars expected to drop from 28% to 18% , offering 5–10% potential price relief. Auto & consumer stocks surged following reform announcements, signaling strong market optimism. Impact on Tesla in India: 1. GST Cuts Don’t Apply to Tesla Tesla imports its Model Y (priced ₹60–70 lakh) as a completel...
India’s automobile industry is one of the largest in the world, and any change in GST (Goods and Services Tax) rates directly impacts car buyers, two-wheeler owners, automobile dealers, and investors. In 2025, discussions about possible GST revisions have generated buzz, particularly regarding cars, bikes, and electric vehicles (EVs) . Let’s break down how these changes may affect the auto sector and consumer decisions. Current GST Rates on Automobiles in India (2025) Before looking at the changes, here’s a quick recap of current GST rates : Small cars (hatchbacks, sedans below 4m): 28% GST + 1-3% cess SUVs & luxury cars: 28% GST + 15-22% cess Motorcycles (above 350cc): 28% GST + 3% cess Electric Vehicles (EVs): 5% GST (no cess) Hybrid Vehicles: 28% GST + cess (varies) 👉 Clearly, EVs enjoy the lowest GST rate, while SUVs and luxury cars face the highest. Possible GST Rate Changes in 2025 According to industry experts and policy discussions: EV Sect...