With the festive season approaching, the automobile sector is gearing up for higher demand, but industry observers caution that recent tax relief measures on petrol and diesel cars could weigh on the electric vehicle (EV) market.
 

The Lower levies on internal combustion engine (ICE) vehicles are expected to make them more attractive to buyers during the high-sales period, potentially slowing down the momentum that EVs have gained over the past few years. Dealers and analysts note that while EV adoption has been growing steadily, price sensitivity continues to influence purchasing decisions in India, especially during the festive rush.
 

The government and automakers have been pushing EV adoption through subsidies, incentives, and an expanding charging network. However, the short-term boost for petrol and diesel cars could create an uneven playing field. Experts believe that consistent policy support for EVs will be essential to ensure that the clean mobility shift does not lose steam in the face of temporary tax concessions on conventional vehicles.