Actually BEV is not exempt from VAT, which is included in the MRSP. The tax exemption that BEV got is purchase tax (10%), which is not included in the list price, ICE vehicle got half exemption (i.e. ICE purchaser has to pay 5% purchase tax), to boost car sales.
The main reason for lower price is mainly due to lower manufacturing cost (economy of scale, robust supply chain), and other factors like fierce competition forces manufacturers to sell vehicles at price barely covers cost contribute as well.
Actually BEV is not exempt from VAT, which is included in the MRSP. The tax exemption that BEV got is purchase tax (10%), which is not included in the list price, ICE vehicle got half exemption (i.e. ICE purchaser has to pay 5% purchase tax), to boost car sales.
The main reason for lower price is mainly due to lower manufacturing cost (economy of scale, robust supply chain), and other factors like fierce competition forces manufacturers to sell vehicles at price barely covers cost contribute as well.