Imported EVs above Rs 30 Lakhs To Get Cheaper: Tesla, Kia among potential beneficiaries
Electric cars are gaining popularity in India, and several international brands like Tesla have shown interest in our market. Import duties on cars brought to India are extremely high, which is one reason why many imported cars are expensive here. We now have a report from ET Auto suggesting that the government is considering lowering duties for electric cars priced over Rs 30 lakh. Brands like Kia and Mercedes-Benz, which sell electric cars in India as CBUs, will benefit if this statement is true.
According to the report, the government is currently analyzing the factors and is very close to finalizing the policy. India currently imposes a 100 percent import duty on cars with a cost, insurance, freight value of more than 33 lakh INR. The government plans to implement this rule for 2-3 years only. One major reason the government is considering this step is that they believe with the entrance of more foreign car manufacturers, India will see an increase in employment opportunities, as well as improved competition and options for customers.
The government could also bring down the cost of electric cars through localization. One source told ET, “The government is looking at reducing import duties temporarily, based on bank guarantees. The quantum of the bank guarantee has not been determined yet, but the thought is that this will help ensure that companies make timely investments and set up local factories.”
Manufacturers like Tesla and Fisker, who are planning to enter the Indian market, would benefit greatly from this policy. Tesla is planning to invest up to USD $2 billion in India if the center is ready to offer them reduced import duties of up to 15 percent. It should be noted that this concession the government is planning to offer is only applicable for electric cars priced above Rs 30 lakh.
The report also suggests that at the moment, Indian car brands like Tata and Mahindra, which are manufacturing electric vehicles locally, have not raised any formal objections to this matter. It is possible that they might come forward and point out how this concession would make things unfair for them and offer an advantage to foreign EV brands. If government implements this policy, we would see a rise in number of EV sales and might slightly affect the ICE vehicle sales as well.
With the electric car market gaining popularity, many companies are looking at India as a potential market and are keen to open shops here. For example, Tesla registered an office in Bengaluru a few years ago. When the government refused to make any changes in the import duties and policies for EVs, they put their plans for the Indian market on hold. Now, there are reports that Tesla is reconsidering launching EVs in India. There are even reports that Tesla could set up a facility in Gujarat’s Sanand. The reason Tesla might have opted for Gujarat is probably because of the ease of access to the ports, which can be utilized to export EVs to other markets. Tesla is also planning an affordable electric car for Indian market that will be priced under Rs 20 lakh. As of now, there is no official confirmation about the import duty reduction policy from the government.
Via: ET Auto
The post Imported EVs above Rs 30 Lakhs To Get Cheaper: Tesla, Kia among potential beneficiaries first appeared on Cartoq.
Electric cars are gaining popularity in India, and several international brands like Tesla have shown interest in our market. Import duties on cars brought to India are extremely high, which is one reason why many imported cars are expensive here. We now have a report from ET Auto suggesting that the government is considering lowering duties for electric cars priced over Rs 30 lakh. Brands like Kia and Mercedes-Benz, which sell electric cars in India as CBUs, will benefit if this statement is true.
According to the report, the government is currently analyzing the factors and is very close to finalizing the policy. India currently imposes a 100 percent import duty on cars with a cost, insurance, freight value of more than 33 lakh INR. The government plans to implement this rule for 2-3 years only. One major reason the government is considering this step is that they believe with the entrance of more foreign car manufacturers, India will see an increase in employment opportunities, as well as improved competition and options for customers.
The government could also bring down the cost of electric cars through localization. One source told ET, “The government is looking at reducing import duties temporarily, based on bank guarantees. The quantum of the bank guarantee has not been determined yet, but the thought is that this will help ensure that companies make timely investments and set up local factories.”
Manufacturers like Tesla and Fisker, who are planning to enter the Indian market, would benefit greatly from this policy. Tesla is planning to invest up to USD $2 billion in India if the center is ready to offer them reduced import duties of up to 15 percent. It should be noted that this concession the government is planning to offer is only applicable for electric cars priced above Rs 30 lakh.
The report also suggests that at the moment, Indian car brands like Tata and Mahindra, which are manufacturing electric vehicles locally, have not raised any formal objections to this matter. It is possible that they might come forward and point out how this concession would make things unfair for them and offer an advantage to foreign EV brands. If government implements this policy, we would see a rise in number of EV sales and might slightly affect the ICE vehicle sales as well.
With the electric car market gaining popularity, many companies are looking at India as a potential market and are keen to open shops here. For example, Tesla registered an office in Bengaluru a few years ago. When the government refused to make any changes in the import duties and policies for EVs, they put their plans for the Indian market on hold. Now, there are reports that Tesla is reconsidering launching EVs in India. There are even reports that Tesla could set up a facility in Gujarat’s Sanand. The reason Tesla might have opted for Gujarat is probably because of the ease of access to the ports, which can be utilized to export EVs to other markets. Tesla is also planning an affordable electric car for Indian market that will be priced under Rs 20 lakh. As of now, there is no official confirmation about the import duty reduction policy from the government.
Via: ET Auto
The post Imported EVs above Rs 30 Lakhs To Get Cheaper: Tesla, Kia among potential beneficiaries first appeared on Cartoq.
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