Electric vehicle (EV) penetration in India's luxury car segment has decreased by approximately 3 percentage points following the implementation of GST 2.0. Industry experts attribute this shift to internal combustion engine (ICE) vehicles offering a better total cost of ownership, particularly in the entry-luxury segment where the price gap has widened. While Mercedes-Benz India notes a dip, they also report higher EV penetration in their top-end models. BMW India, however, highlights sustained EV demand driven by factors beyond price, such as sustainability and technology.