GST 2.0 backfires on EVs: Petrol-Diesel cars steal the thunder, Mahindra shines

New Delhi (The Uttam Hindu): The recently implemented new tax system 'GST 2.0' in India is having a mixed impact on the automobile sector. While on one hand the reduction in taxes has reduced the prices of petrol and diesel vehicles and benefited the automobile industry, on the other hand the electric vehicle (EV) market has suffered a direct loss. According to the latest report of Equirus Securities, the growth of India's electric vehicle market has slowed down in November 2025. After the reduction in GST, the prices of petrol-diesel vehicles have reduced and customers are turning back to conventional fuel vehicles, due to which the market share of EVs has declined.

The report's data shows that electric vehicles have faced the biggest challenge in the car segment. Although electric car sales increased by 63% to 14,700 units in November, their share in the overall vehicle market has declined from 5% to just 3.7%. The main reason for this is that buyers have been more attracted to petrol and diesel cars that have become cheaper after GST 2.0. Talking about brands, Tata Motors still holds the first position with 41% share, but its share has fallen below 49%. Mahindra, on the other hand, has performed brilliantly and increased its share from 6% to 20%, while MG remains in second place with 25% share.

The shine of electric vehicles has also faded in the two-wheeler market. In November, electric two-wheeler sales declined by 3% to 1.17 lakh units. Their share in the overall market has fallen from 7% to 4.6%. This is being attributed to the huge increase in demand for petrol two-wheelers after the GST cut and some shortage in the supply of EVs. In this sluggish market, TVS Motor has taken the lead on the strength of its new 'Orbiter' scooter and has become the number one with 26% market share. Bajaj remained at second place, while the share of once market leaders Ola and Ather Energy has seen a decline.

Amidst all this, the electric three-wheeler segment has been the only sector that has shown strength. After a slight decline in October, the market share of electric three-wheelers returned to a high of 62% in November. Electric auto sales increased by 28% to 23,400 units. Mahindra continues to dominate this segment, capturing 46% market share. Due to new models and a strong dealer network, Mahindra has left competitors like Piaggio far behind. Piaggio's share has fallen from 13% to just 6% in a year.