Team Blitz India
NEW DELHI: The possibility of reducing import duties for luxury electric vehicle manufacturers like Tesla has sparked concerns among Indian automobile companies, including Mahindra & Mahindra, Tata Motors, Maruti Suzuki and Hyundai.
Government officials have revealed that the policy is still under consideration, with various options being explored. Any decision regarding import duties will only be made after consulting with auto companies across the board.
A senior official told the Times of India that one option being considered is to lower import duties for a certain period, although no decision has been taken yet. The official said that the policy will take some time to “evolve”
Tesla has long been advocating for lower import duties for its vehicles and has expressed interest in establishing a manufacturing base in India to produce a more affordable variant for the domestic and export markets.
However, companies like Tata Motors and Mahindra & Mahindra have strongly opposed relaxing import duties, as this could jeopardize their sales and business prospects after making significant investments.
“They argue that a duty cut now would contradict the government’s previous commitment to rewarding those who invested early and locally,”a source said. Both companies already have vehicles on the market and are committed to the Production-Linked Incentive (PLI) scheme.
