INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Discussions around lowering import duty for high-end electric vehicle majors, including Tesla, have raised the temperature in the
Indian automobiles sector with companies ranging from homegrown Mahindra - Mahindra and Tata Motors to Maruti Suzuki and Hyundai getting
nervous.Government officials told TOI the policy is still in the works, with multiple options on the table, and any decision will be taken
vehicles and the plan is back on the table, although the Elon Musk-led company has evinced interest in setting up a manufacturing base for
what could be a cheaper variant targeted at the Indian and the export market.Companies such as Tata Motors and Mahindra - Mahindra are
Both the companies already have vehicles on the road and are part of the PLI commitments too.Some of the Japanese players, which are yet to
enter the electric segment, are worried about the fate of their hybrids, something they are betting on till their EVs roll out on Indian
roads.Industry body Siam has had discussions with most of the companies and is now looking to formalise its views that will be shared with
have adopted a wait-and-watch approach
Some of these companies have already invested for assembly of electrics and would now want lower commitments on local investments to avail
relaxation in duty against what Tesla will be asked to invest
If their demands are met, they will not staunchly oppose any relaxation on the import duty front
convinced about the move as it will not just result in the government losing revenue but will signal a backing for the high-end segment
space in the free trade agreements.Those pushing the policy that seeks to lower tariffs for a limited period argue that more competition is
expected to drive faster deployment of EVs.
