New Delhi, Nov. 6 -- If you're shopping for a new car, the decision just got trickier. Electric or petrol?

A recent cut in Goods and Services Tax (GST) on certain internal combustion engine (ICE) vehicles and strategic price cuts by carmakers has made some petrol and diesel SUVs Rs.2 lakh cheaper or more. That's good news for car buyers, but it also complicates one of today's biggest financial decisions: does an electric vehicle (EV) still make economic sense? The debate gains importance as air quality deteriorates sharply in the capital city and nearby, partly due to vehicle emissions.

Effective 22 September 2025, the GST on small cars (up to 1200cc petrol/CNG and 1500cc diesel, under 4m length) has been reduced from 28% to 18%, while ...