Tata Motors Opposes Import Tax Cuts on Electric Vehicles For Elon Musk’s Tesla – EQ Mag Pro
Tata Motors, the electric car market leader in India, has opposed any reduction in import duty on electric cars as demanded by electric carmaker Tesla CEO Elon Musk.
New Delhi: The Tata Group is reportedly against slashing import duties on electric vehicles (EVs) as demanded by electric car maker Tesla CEO Elon Musk, mentioning that the move “goes contrary” to the Centre’s FAME—Faster Adoption and Manufacturing of Hybrid and Electric vehicle—policy, which seeks to make India the manufacturing hub of EVs.
At present, import duty on EVs in India is 100 per cent if value is over $40,000, including the car’s cost, insurance and freight, and 60 per cent if the value is below $40,000.
Localisation norms remain a key focus area to push higher adoption of electrics and making them affordable. Efforts should be made to manufacture EVs and components in India against subsidised imports, ToI quoted Shailesh Chandra, president of Tata Motors passenger vehicles business unit, as saying.
Asked whether the Centre should consider demands made by Tesla and some other auto majors such as Hyundai to cut the import duty for EVs, Chandra said: “… it goes slightly contrary to that direction of the FAME programme, how it has been articulated and the direction it has set.”
It is important to note that the Mumbai-based cars-to-coffee conglomerate is bullish on the EVs business. The electric version of the Nexon mini SUV received a healthy response, and the automaker is looking at more versions.
He further added that like several other automakers in India, Tata Motors has taken the FAME policy as “one single reference” as they concentrate on their product expansion plans.
“FAME has really focused on two aspects. The first aspect is bringing affordable EVs… which are less than Rs 15 lakh. The second very clear articulation is localisation. Because if you have to really drive electrification on a sustainable basis, till you don’t ensure a road map for local value addition, this will not be sustainable,” Chandra told the daily.
Source: timesnownews
