The Government of India has announced a new electric vehicle policy. This will make the path of entry into India easier for all the big and small EV companies of the world. With this new policy, companies like Tesla will have to pay less tax. This new policy has been brought so that foreign companies can set up their manufacturing units in India.
A few years ago, when talks were going on to bring Tesla to India for the first time, Tesla had talked about reducing the import duty. Then Tata Group or rather Tata Motors had opposed it the most. He had then indicated that local players would suffer the most by reducing duty on imported EVs. Now that the government has implemented a new policy and the tax on imported EVs has been reduced.
Tata Motors is still most afraid of this. This time it is not Tesla but the Chinese company Auto. Which has entered India before Tesla and has explored itself in 90 percent of the country’s markets. Let us also tell you which Chinese company are Tata Motors and other auto companies of the country most afraid of and which company is that? Before taking the matter further, we have to go back a little and understand this entire theory.
Foreign companies benefit from the new policy
The Government of India has announced a new electric vehicle policy. This will make the path of entry into India easier for all the big and small EV companies of the world. With this new policy, companies like Tesla will have to pay less tax on their imported vehicles. This new policy has been brought so that foreign companies can set up their manufacturing units in India. Under this new EV policy, foreign companies will have to pay only 15 percent duty on 8 thousand imported EVs in a year. All these efforts by the Government of India are to promote EVs in the country.
Now questions arise
After the introduction of this policy, some questions have also arisen. A new debate has started, which has a direct connection with the local players. Can this policy cause harm to those Indian companies which have been continuously working on EV? Yes, this is the same question which was raised by Tata Motors and other local companies a few years ago. When Tesla was adamant on reducing the import duty. At that time Tesla was not listened to and Tata Motors emerged as the country’s largest EV maker in India.
What is Tata’s planning?
According to the report, Tata Motors dominates India’s EV market with more than 70 percent share. It has electric versions of Tiago, Nexon, Tigor and Punch models. Tata Motors has big plans to electrify its existing premium models as well. According to the report, EV variant of Harrier will also be launched. Earlier, Tata Motors had argued that reducing the duty would have a negative impact on domestic players and would worsen the investment environment.
Advantages and disadvantages of the new EV policy
Now it is not just about Tesla. It has gone much further than this. Tesla is no longer the biggest threat to Tata Motors. Tata Motors may still suffer the most loss from the new EV policy. However, some people say that this policy will help local EV makers to enter the premium segment.
In which Tata Motors is yet to expand. Experts also say that the biggest concern for Tata Motors is not Tesla, but Chinese companies. Which can enter India by forming joint ventures with Indian players. Some of which have already entered.
Warning from Chinese companies
Global Trade Research Initiative has recently said in warning words that India’s new EV policy may allow Chinese auto companies to enter India on a large scale. The report says that Chinese EVs may be seen on Indian roads in the next few years. Be it passenger EV or commercial segment EV.
It has been said in the report that these Chinese companies are ready to enter India by doing joint ventures with Indian companies. The Chinese EV that poses the biggest threat to Tata Motors and other local players is BYD. Which has entered India before Tesla. It has also resolved to cover 90 percent of India’s EV market by the end of the year.
what is the difference in prices
BYD has recently launched its Seal electric sedan in India. The company is also going to launch its Atto 3 and E2 premium EVs soon. BYD is also planning to bring affordable EVs in India. Which every Indian is dreaming of. While Tesla sells EVs in the US for $40,000-70,000, BYD produces a whole range of autos from cheap to luxury and even electric buses. With this, it has been able to overtake Tesla in terms of volume.
Whereas the price of Tata Tiago is Rs 10 lakh, the price of Punch is Rs 11 lakh and Rs 15 lakh. Even the price of the upcoming Tata Harrier EV with top end features is expected to be under Rs 30 lakh. The best selling EV, Mahindra XUV400 is available for Rs 16 lakh. This is the reason why Tata and Mahindra are not too worried about competition from Tesla, which till now focuses on more expensive vehicles.
BYD on the battery front
On the other hand, the biggest concern is being seen in India regarding the battery in EV. In which BYD is technically the best in the world. Which is very important and is also the most important part of EV. Tesla and other global EV companies appear to be focusing on design and advanced features.
BYD and other Chinese companies are focusing on battery and minimum value. In which other global companies are not stopping anywhere. This aspect can prove to be very decisive in the Indian market. Because in India the price is seen first and then other things are seen.
There is also Xiaomi, which has recently launched its SU7 electric car in China. Although Xiaomi has not announced its India plans, but this car can give a tough competition to Indian EV players. For around Rs 25 lakh, the SU7 is pretty great. Can help Xiaomi repeat the success of its smartphones in the EV industry.