C'mon, Tesla, now eCar do faisla
EV makers to test the Indian market while they make up their minds on local manufacturing. This was a sticking point in negotiations with Tesla, which wanted import duties lowered as a precondition to investing in the country. GoI was clear that it would not permit dumping of cars manufactured in China.
The policy tweak that allows limited imports against offsetting investments is a sensible workaround that helps all parties keen to speed along the road. EV makers gain access to a promising market as global sales are plateauing. The government ensures protection to domestic automobile companies.
Indian car buyers acquire a taste for electric mobility, which speeds up the economy's transition towards clean energy.
Tesla needs to be in India with local automobile companies like Tata Motors and M&M pushing the envelope on EVs, whose sales are minuscule but are expected to power ahead on production-linked incentives. Market leader Suzuki has, in association with Toyota, finetuned its portfolio of hybrids that make the most compelling case to Indian car buyers, given the poor charging infrastructure for all-electric vehicles. Other Asian and European carmakers operating in the country are expected to be ready with their EV offerings for India as they churn their product portfolios in their home markets.
The Indian market for EVs is evolving uniquely and will benefit from higher competitive intensity technology leaders like Tesla can provide.
India's energy transition is expected to create an export market for EVs that gain traction locally. This involves cheaper cars that cater to India's price-sensitive market while addressing environmental concerns. The policy for import of high-end EVs bears parity with subsidies offered
