Two Indian government sources stated that under a new strategy that reduces import duties for businesses agreeing to set up local production, India’s Tata Motors intends to import its luxury electric Jaguar Land Rover (JLR) vehicles. Tesla is also anticipated to begin importing cars into India and investing in it. However, if Tata’s plan materialises, it will be the first local automaker to choose the strategy to promote electric vehicles (EVs). The proposal, which was unveiled in March, reduces import duties on some EV models from 100% to 15% provided an automaker invests at least $500 million and establishes a domestic facility within three years.
Tata New EV Policy for Importing Cars
In order to save the home sector, Tata had initially pushed the Indian government to refrain from lowering duties. According to a third person who is aware of the company’s plans, Tata and JLR are currently talking about the prospect of applying for incentives under the EV policy, though discussions are still in the early stages. The company is preparing to build a $1 billion plant in the southern state of Tamil Nadu to produce JLR automobiles, even as it solidifies its intentions to import JLR electric vehicles from the United Kingdom. Which JLR vehicles Tata will produce there is still up in the air.
According to the official, the Indian government met with members of the auto sector on Thursday to start drafting the policy’s structure.
Hyundai Motor Co., Vinfast, Volkswagen, BMW, Mercedes, Maruti Suzuki, Mahindra & Mahindra, Toyota Motor Co., and other companies were present at the meeting. A representative from Tesla also attended. India’s tiny but expanding EV market is dominated by Tata. Although demand in important areas like the US and China is slowing, the government still wants to see 30% of cars sold by 2030 be electric. In 2023, electric models accounted for about 2% of all automobile sales.
