The automobile industry has sought 5% GST on two-wheelers running on flex fuel, at par with those powered by electric powertrains, to further the government’s push toward bringing vehicles that help reduce oil imports. “The industry has sought 5% GST on flex fuel two-wheelers and price guarantee on fuel for flex fuel vehicles (FFVs). India’s leading two-wheeler makers from Hero MotoCorp to Bajaj Auto and TVS Motor Company are set to commence mass production of one flex fuel two-wheeler each by September/October 2024. For passenger vehicles, given complexity of product mix and volume constraints, timelines for mass introduction of flex fuel vehicles have been set in April 2027. Increased utilization of flex fuel for mobility needs will also provide an additional source of income to farmers who comprise 58% of the workforce in the country.

Source: Economic Times June 29, 2023 05:08 UTC