Duty cut not to have major impact on local EV makers

IMPORT duty concessions on completely built unit (CBU) electric cars will not have a major impact on local players even as the government via its updated EV policy is giving a massive tax benefit of about ₹16 lakh per unit on 40,000 electric vehicles (EV) over the next 5 years, according to a top carmaker, industry experts as well as the government "It will help accelerate the EV ecosystem in India.

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Our Born Electric SUVs are on track to be launched in Jan 2025 with cutting-edge technology. Our products will speak for themselves," said a Mahindra spokesperson. In the past, Mahindra and Tata Motors had advised the government not to lower import duty on EVs and protect domestic firms.

Siddhartha Bagri, CEO, Pravaig, a new-age e-carmaker, said the new EV policy undermines and underscores the contributions in capital, time and energy that millions of people, thousands of innovators and hundreds of companies have made in India over the last many decades. "To attract less than 0.1% of that contribution in terms of an investment into India, we believe a change in a significant policy like this will adversely impact sentiment of the Indian automotive ecosystem," added Bagri.