Ola Opposes Auto Firms' Plea to Reduce Duty on Traction Motors

Electric two-wheeler maker Ola Electric has struck a divergent note with the auto industry, which has appealed to the government to cut the basic Customs duty (BCD) on traction motors by half due to the ongoing export restrictions placed by China on standalone magnets.

- SURAJEET DAS GUPTA

While the industry has asked the ministry of heavy industries (MHI) to reduce the basic customs duty on traction motors to 7.5 per cent from the current 15 per cent, Ola has opposed the move saying that "there is no global supply chain crisis in electric magnets in the auto sector".

The Bengaluru-based firm has reasoned that it was not in favour of any reduction in duty as this would have an adverse impact on those companies which are making the motors in India, and only importing the rare earth motors (like them).