The GST council has proposed steep increases in consumer levies on luxury electric cars priced above $46,000, a government document showed, a move that could impact sales of carmakers such as Tesla, Mercedes-Benz, BMW and BYD.

Prime Minister Narendra Modi is aiming to reform India’s tax system and is pushing Indian customers to buy more domestic goods, just when relations with the United States have soured due to high tariffs. His government has recommended hefty cuts in the goods and services tax (GST) that could make everything from shampoos to electronics cheaper.

The key panel tasked with making rate suggestions to India’s powerful GST Council has backed sweeping cuts to many items in line with PM Modi’s overhaul, but it has called for raising taxes on electric cars, the document detailing its recommendations showed.

The panel recommended raising the GST rate to 18% from 5% currently for EVs priced between ₹2 million and ₹4 million ($23,000-$46,000). It also proposed hiking the tax to 28% for cars priced above $46,000, saying that such vehicles cater to the “upper segment” of society and are largely imported rather than manufactured domestically.

But the government has simultaneously decided to do away with the 28% tax rate altogether, leaving the GST Council with the option to increase the tax on EVs to 18%, or put them in the newly planned 40% category carved out for certain luxury goods, said an Indian government source familiar with the discussions.

The GST Council, led by the Union Finance Minister, and which has members from all States, is meeting on September 3-4 to review the proposals, and has the ultimate authority on decision-making.

The secretariat of the GST Council did not respond to Reuters queries.

After the Reuters story, the Nifty Auto index turned negative and fell as much as 0.5%, with local automakers Mahindra and Mahindra falling almost 3% and Tata Motors dropping 1.2%.

India’s EV market is small, making up about 5% of total cars sold in April to July this year, but growth in the segment has been rapid — EV car sales in India rose 93% to 15,500 units during that period.

“The uptake of electric vehicles is increasing and while, the low rate of 5% is to incentivise faster adoption of electric vehicles, it is also important to signal that higher-priced EVs can be taxed at higher rates,” said the document, detailing the tax panel’s recommendations.

The proposal could affect domestic EV makers such as Mahindra and Tata Motors, though their offerings above the ₹2 million price range are limited.

Foreign automakers offering high-end EVs stand to be hit harder. Tesla just launched its Model Y in India with a base price of $65,000, while Mercedes-Benz, BMW and BYD also offer top-end luxury electric cars.

Carmakers have unanimously called for maintaining the 5% GST rate to avoid disrupting India’s EV aspirations and targets.

In a statement, Tata told Reuters it is “imperative” the tax rate is retained as any hikes will slow “the transition to clean mobility.” BMW India, which is investing in expanding its EV portfolio in the country, said an increase “can derail the vision of high electric adoption and local production.”

Mercedes-Benz said that an upward revision would “mostly impact the entry-level” luxury cars. “Our top-end luxury battery EVs will not be impacted much,” said Santosh Iyer, CEO, Mercedes-Benz India.

In July, Tata Motors led the Indian electric car market with a near 40% market share, while Mahindra has 18%. BYD holds a 3% market share, while Mercedes and BMW together account for 2%. Tesla is taking bookings but has yet to start deliveries.

Tesla has opened two showrooms in India in recent months, years after Elon Musk repeatedly criticised high tariffs of roughly 100% on imported cars. The GST tax is applied on top of these tariffs, further increasing the costs of Tesla cars.

Published – September 02, 2025 11:03 pm IST

New Delhi:

Ian Cameron, former Rolls-Royce head designer and vintage car expert, was killed at his $3 million mansion in Germany after getting stabbed by a man during a robbery attempt.

The 74-year-old British national was living with his wife Verena Kloos in Germany’s Herrsching at Lake Ammersee during the incident. Ms Kloos escaped the attack by scaling a wall and landing in her neighbour’s house, from where she informed the cops.

The power cables to the garage of Ian Cameron’s house, where valuables were kept, had been purposefully cut off, according to CCTV evidence.

“The investigation suggests that this was a violent crime,” said police officials.

Ian Cameron played a “significant” role in the designing of iconic Rolls-Royce vehicles like the Ghost, Phantom, and 3 Series. 

Ian Cameron undertook the role of leading the Rolls-Royce design team after BMW acquired Rolls-Royce’s automotive business in 1998.

“We are deeply shocked and saddened by the news about our former Rolls-Royce designer. Our thoughts are with his family and friends during these difficult hours,” said BMW in a statement to Automotive News.  

“Ian played a significant role in shaping Rolls-Royce from when it was first acquired by BMW Group and moved to its home at Goodwood, West Sussex. During Ian’s tenure, he led the design team for all Phantom family and Ghost models, creating thoroughly contemporary motor cars that remained sympathetic to the marque’s design lineage,” the automaker added.

The suspect’s height is estimated to be between 180 and 190 cm (5 ft 9 in to 6 ft 2 in). He is wearing light-colored pants, a dark-blue sweatshirt, yellow-green gloves, and a red backpack, according to a description by police officials.

A manhunt has been launched to locate the suspect who is currently on the run. Dogs and a helicopter are helping search teams thoroughly examine the area to catch the murderer.

Two thieves barged into a garage in the US and stole an Aston Martin, shortly after the owner came back from a drive. A video posted by Westport Police Department in Connecticut shows the masked thieves running up behind the homeowner as he drives the sports car into his garage. They drag the man out of the blue convertible and drive away. The incident took place around 4pm on Sunday, the police further said on the social media platform.

The video also shows an argument between the carjackers and the homeowner. When the man refused to move, one of the robbers pulled him out and threw him on the floor, as seen in the clip.

The homeowner kept shouting for help, and asked someone inside the house to call the police.

“There have been no significant developments in the investigation as of this writing. The Aston Martin has not been recovered and there have been no arrests,” the West Port Police said on Facebook.

The police added that the robbers believed to have followed the owner of the Aston Martin to his house in a stole dark blue BMW.

“The complaint suffered minor injuries as a result of the assault but declined medical attention. Broadcast messages were sent to neighbouring towns and Connecticut State Police. Both of these vehicles were reported to be last seen traveling north on Route 8,” the Facebook post further said.

The Westport police warned residents to be extra aware of their surroundings and report any suspicious behaviour to emergency number 911.