Ad
Ad
Tesla eyes India; import tax debates. Policies aim at global carmakers, resisted by locals. Tesla's pricing strategy and shifting stance amid complexities.
As Tesla gears up for a potential entry into the Indian market, the Indian government is yet to finalize its stance on reducing import taxes on electric vehicles (EVs). The proposed policy aims to incentivize the global carmakers, including Tesla, to commit to local manufacturing. However, discussions on cutting the 100% EV import tax to as low as 15% have encountered resistance from the domestic automakers, particularly in the wake of Tesla's plans to set up a factory in India.
The prospect of Tesla entering the Indian market has raised concerns among the domestic automakers, including the industry giants like Tata Motors and Mahindra & Mahindra. The proposed policy, which could benefit Tesla and other global players, is facing opposition from the local manufacturers who fear the potential disadvantages in a highly competitive market.
Tesla's entry strategy revolves around the pricing, with the company expressing its interest in producing an EV priced at $24,000 in India, approximately 25% cheaper than its current entry models. Moreover, Tesla has recommended reduced taxes on higher-end models it plans to introduce in the country. Rajesh Kumar Singh, a key official at India's department for industry and trade promotion, highlighted the challenging nature of the issue and the challenges in reaching a final decision.
Singh acknowledged the resistance from domestic automakers operating in the EV price segment targeted by Tesla. The hesitation stems from the fear of heightened competition and a desire to protect the interests of local firms. Mahindra & Mahindra Managing Director Anish Shah emphasized the importance of a level playing field and called for the promotion of local manufacturing to ensure fair competition.
Ad
Ad
Tesla's initial attempt to enter India faced obstacles due to demands for lower import taxes. However, there has been a shift in stance, with Tesla now open to setting up local manufacturing in line with India's objectives. Talks have centered around the possibility of temporarily lowering tariffs while ensuring the substantial investments and commitments to domestic value addition from Tesla.
India, with its 4 million car sales last year, 82,000 of which were EVs and marking a 115% increase from the previous year. The customers are hesitant to switch to EVs as the government is trying to deploy proper charging infrastructure across the country as that is a key reason for the hesitation.
Also Read: New Creta’s Strengthened Exoskeleton Holds Promise for High NCAP Rating
As India strives to shape its EV policy, the delicate balance between promoting global players like Tesla and safeguarding the interests of domestic automakers remains a key challenge. The growing EV segment in the country adds complexity to the decision-making process. The government's focus on establishing sufficient charging infrastructure underscores the broader efforts to facilitate a seamless transition to electric mobility in India. The coming months are crucial as stakeholders await a final decision on the import tax policy, anticipating its impact on the automotive landscape in the country.
Ducati Hypermotard 950 RVE Introduces New Graffiti Evo Color Option
Ducati unveils the Hypermotard 950 RVE in India with the vibrant Graffiti Evo color, accentuating its youthful appeal. Packed with advanced features and a powerful engine, it promises an exciting ride.
26-Apr-2024 11:52 AM
Read Full NewsDucati Hypermotard 950 RVE Introduces New Graffiti Evo Color Option
Ducati unveils the Hypermotard 950 RVE in India with the vibrant Graffiti Evo color, accentuating its youthful appeal. Packed with advanced features and a powerful engine, it promises an exciting ride.
26-Apr-2024 11:52 AM
Read Full NewsToyota India Enters into Car Care Market With T-Gloss; Plans to Rival 3M; Check Details
Toyota Kirloskar Motors plans to pioneer car care services in India with T-Gloss. Offering comprehensive detailing, protection, and customization options, T-Gloss enhances vehicle aesthetics and longevity. Available at all authorized Toyota dealerships, it reflects Toyota's commitment to customer satisfaction and quality maintenance. With trained professionals and tailored solutions, Toyota sets a new standard in car care services, ensuring a seamless ownership experience for customers.
26-Apr-2024 11:45 AM
Read Full NewsToyota India Enters into Car Care Market With T-Gloss; Plans to Rival 3M; Check Details
Toyota Kirloskar Motors plans to pioneer car care services in India with T-Gloss. Offering comprehensive detailing, protection, and customization options, T-Gloss enhances vehicle aesthetics and longevity. Available at all authorized Toyota dealerships, it reflects Toyota's commitment to customer satisfaction and quality maintenance. With trained professionals and tailored solutions, Toyota sets a new standard in car care services, ensuring a seamless ownership experience for customers.
26-Apr-2024 11:45 AM
Read Full NewsVolkswagen Tayron Breaks Cover At Beijing Motor Show, India Debut Expected in 2024; Details
The VW Tayron, unveiled at the 2024 Beijing Motor Show, is set to captivate both Chinese and Indian markets. Sporting a dynamic design language with blacked-out elements and a powerful 2.0-litre turbo-petrol engine, it promises an exhilarating driving experience. With its impending launch in India in 2025, it's poised to challenge the likes of the Jeep Meridian and Skoda Kodiaq, igniting fierce competition in the SUV segment.
26-Apr-2024 09:39 AM
Read Full NewsVolkswagen Tayron Breaks Cover At Beijing Motor Show, India Debut Expected in 2024; Details
The VW Tayron, unveiled at the 2024 Beijing Motor Show, is set to captivate both Chinese and Indian markets. Sporting a dynamic design language with blacked-out elements and a powerful 2.0-litre turbo-petrol engine, it promises an exhilarating driving experience. With its impending launch in India in 2025, it's poised to challenge the likes of the Jeep Meridian and Skoda Kodiaq, igniting fierce competition in the SUV segment.
26-Apr-2024 09:39 AM
Read Full NewsAffordable Bajaj Chetak e-scooter Images Leaked Ahead of Launch
Bajaj Auto gears up to unveil a new budget-friendly variant of its Chetak e-scooter, featuring strategic changes like steel wheels and a monochrome display.
26-Apr-2024 07:03 AM
Read Full NewsAffordable Bajaj Chetak e-scooter Images Leaked Ahead of Launch
Bajaj Auto gears up to unveil a new budget-friendly variant of its Chetak e-scooter, featuring strategic changes like steel wheels and a monochrome display.
26-Apr-2024 07:03 AM
Read Full NewsCritical Flaws Highlighted in Xiaomi SU7: 8 Reasons for Concern
Uncover the vulnerabilities in Xiaomi SU7 and understand the 8 reasons for concern. Keep your device secure with essential insights.
26-Apr-2024 06:57 AM
Read Full NewsCritical Flaws Highlighted in Xiaomi SU7: 8 Reasons for Concern
Uncover the vulnerabilities in Xiaomi SU7 and understand the 8 reasons for concern. Keep your device secure with essential insights.
26-Apr-2024 06:57 AM
Read Full NewsMade-in-India Kawasaki Versys-X 300 to Enter Markets by Year-End
Made-in-India Kawasaki Versys-X 300 is set to debut by year-end, intensifying competition in adventure-touring. With robust performance and safety features.
26-Apr-2024 05:46 AM
Read Full NewsMade-in-India Kawasaki Versys-X 300 to Enter Markets by Year-End
Made-in-India Kawasaki Versys-X 300 is set to debut by year-end, intensifying competition in adventure-touring. With robust performance and safety features.
26-Apr-2024 05:46 AM
Read Full NewsAd
Ad
BMW i5
₹ 1.19 Cr
Jeep Wrangler facelift
₹ 67.65 - 71.65 Lakh
Aston Martin Vantage
₹ 3.99 Cr
Ferrari Purosangue SUV
₹ 10.50 Cr
Mahindra Bolero Neo Plus
₹ 11.39 - 12.49 Lakh
Toyota bZ4x
₹ 70.00 Lakh
MG 4
₹ 15.00 - 21.00 Lakh
Mercedes-Benz GLC Coupe 2024
₹ 65.00 Lakh
Audi Q8 2024
₹ 1.17 Cr
Nissan X-Trail
₹ 26.00 - 32.00 Lakh
Ad
Ad
Ad