Shares of Mahindra & Mahindra (M&M) declined 2.40% on Tuesday, slipping to ₹3,235.90 on the NSE, after an Indian government panel recommended higher taxes on luxury electric vehicles (EVs). The stock fell sharply in afternoon trade, losing nearly ₹80 from the previous close of ₹3,315.40.
According to a government document reviewed by Reuters, the panel has proposed raising the goods and services tax (GST) rate on electric cars priced between ₹20 lakh and ₹40 lakh from the current 5% to 18%. It also suggested that EVs priced above $46,000 (approximately ₹38 lakh) should attract higher consumption taxes, arguing that such models are largely used by the “upper segment of society.”
The recommendation, if accepted, could impact the premium EV portfolio of several automakers, including M&M, which has been aggressively investing in electric SUVs and high-end models under its Born Electric range.
At 2:30 pm, M&M shares were trading at ₹3,235.90, down 2.40%, with a market capitalization of ₹3.87 trillion. The stock has a 52-week range of ₹2,425 – ₹3,432.
