MG Motor: Tesla's Entry into India's EV market will level up the EV Game

By Team Startupcity  |  Wednesday, 24 April 2024, 17:03 IST

MG Motor: Tesla's Entry into India's EV market will level up the EV Game
The electric vehicle industry of India still lacks in competition, but the entry footprints of Tesla & other international automakers into the Indian EV market will make game fair, MG Motor India’s President Emeritus Rajeev Chaba said. 
As per Bain & Company, EVs make up around 5 percent of automobile sector of India. The Indian government’s objective of accomplishing 30 percent EV deals by 2030 “looks extended right now of time,” Chaba said 
Nonetheless, anywhere in the middle of 20% to 30% might be conceivable assuming that there are greater government strategies drawing attention from in international automakers, he added. 
During the last month, the public authority declared that import charges on specific EVs will be sliced to 15percent assuming the carmakers meet specific necessities. 
According to Reuters, India currently imposes a 70% or 100% import tax on foreign electric vehicles. As per India’s new EV policy, automakers that contribute no less than $500 million & set up assembling offices in India in within the duration of three years, will be qualified to import up to 8,000 EVs that cost $35,000 or more a year, at a lower tax & charge rate. 
Tesla, which has been attempting to enter the Indian market and has long encouraged for lower import charges, is delighted by the change. Several domestic automakers, including Tata Motors, Mahindra & Mahindra, and Maruti Suzuki, have reportedly previously voiced out the related concerns on the same issue.
Speaking to the market demand, Chaba expresses, “Competition is limited at this point of time. Numbers are still constrained because consumers don’t have compelling choices”.
Further he adds, “When India as a market gets attention, more and more players and investments will come in. [Tesla] will definitely help in developing the ecosystem and some consumers will go for them”. 

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