Entry of global companies in India’s EV sector is a big challenge, domestic manufacturers will face losses
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New Delhi : After the discussion on reduction in duty on import of electric vehicles in India has intensified, lines of worry are clearly visible on the faces of domestic vehicle manufacturing companies. In fact, American industrialist Elon Musk’s company Tesla Inc. had proposed a tax cut to the government to enter India. Initially the government had refused to give any tax concession to Elon Musk, but after Prime Minister Narendra Modi’s visit to America, the government changed its mind and is preparing to cut the duty on import of electric vehicles. Started. Only after this step of the government, a big challenge has arisen before the domestic electric vehicle manufacturing companies. In this connection, Chief Executive Officer (CEO) of domestic vehicle manufacturer Mahindra & Mahindra, Anish Shah has said that the entry of global companies in India’s electric vehicle industry will be a big challenge for the domestic producers and they will suffer huge losses.
Domestic companies performed better
According to a Money Control report, Mahindra & Mahindra Managing Director and CEO Anish Shah, without naming Tesla Inc, stressed that by investing in India’s electric vehicle industry, these global players have presented a big challenge to us. . He said that they will not only invest here but will also compete with us. What will be the impact on Tata Motors and Mahindra & Mahindra, which manufacture indigenous electric cars on a large scale for the local market, after the entry of global players into India? In response to this question, he said that till now we have demonstrated our best capabilities by introducing the best products in the market. He said that we have competed and defeated all the big global companies in India. He said that now we are building for the world in India itself.
Work is going on on new policy
According to media reports, the central government is working on a new electric vehicle policy. After this new policy of the government, global vehicle manufacturing companies like Tesla will be able to get the benefit of reduction in import duty. These global companies are claiming to manufacture electric vehicles locally in India.
Tesla will start importing after the new policy is implemented
The report said the government’s proposed new electric vehicle policy could help companies like Tesla import fully manufactured EVs into India at lower taxes, which is 15 per cent less than the current 100 per cent. This policy applies to cars that cost more than $40,000 and 70 percent for the rest. There is also news that Tesla is planning to import electric cars into India directly from its electric vehicle plant in Germany. Although Tesla also has a plant in China, but due to the ongoing border dispute between India and China, it cannot import electric cars from China.
Domestic companies will compete with global players
Anish Shah said that we will welcome the move of all global players to come and invest in India and compete with us. So we will challenge them that if you want to do this, then come and invest in India. After this compete with us. Meanwhile, Mahindra has drawn up its plans to invest over Rs 10,000 crore in setting up a plant to manufacture electric cars in Pune, Maharashtra. The Mumbai-based automaker has also developed six electric SUVs based on its electric EV platform ‘Englo’. The company estimates that by the end of 2027, 30 percent of its total sales will come from e-SUVs.
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