New Delhi, Aug. 22 -- Electric vehicle (EV) manufacturers may face a competitive setback if the government proceeds with a proposed reduction in Goods and Services Tax (GST) on internal combustion engine (ICE) vehicles, according to a recent report by HSBC Investment Research.

The report highlights that lowering taxes on traditional vehicles could erode the pricing advantage currently enjoyed by EVs, potentially slowing the sector's growth momentum.

"EV players will face a disadvantage if taxes are reduced on ICE vehicles," the report added.

The Government has proposed to scrap two slabs under the GST regime.

Bihar Deputy Chief Minister Samrat Choudhary on Thursday said that the Group of Ministers (GoM) has extended its support to the...