New scheme for EVs may put global majors in fast lane

The new scheme, promoting manufacturing of electric vehicles (EVs) by global majors, will give a fillip to companies like Tesla and its upstart rival Vinfast, both of whom have lobbied for lower import duties from the Centre.

- SURAJEET DAS GUPTA

While Vinfast has already announced an investment of ₹4,000 crore to set up an electric vehicle (EV) plant in Tamil Nadu, Tesla's next move will be watched carefully.

Four years ago, Musk announced that his company would come to India.

He registered a firm in Bengaluru to import cars ar set up company-owned retail showrooms, like in the US.

But he made no secret of the stumbling block ahead on X. Musk said that India had one of the highest import duties in the world.

He added that this is inconsistent with its climate goals and asked for substantial duty reduction.

storm But that kicked off a - domestic players like Mahindra and Mahindra (M&M) and the Tatas lobbied through the Society of Indian Automobile Manufacturers (SIAM), saying that such a move would be unfair, considering the government had set up a high localisation threshold for the Indian industry.