European Union (EU) is planning to increase its import duty from 10% to 25-30% on all Chinese electric vehicles and batteries to protect domestic producers. The US, too, has proposed to quadruple tariffs on Chinese EVs to 100% to discourage cheap imports. The proposed EU tariffs are expected to be announced in July, raising the possibility of Chinese manufacturers redirecting their excess inventory to markets like India, the people cited above said on condition of anonymity, adding that he ministry of commerce and industry has been tasked with spearheading these efforts, working in collaboration with other relevant departments and agencies.
As of now, India’s primary focus will be on preventing dumping of EV batteries as their import could start soon after the tariff hikes; import of EVs will be regulated in later stages, the people cited above said. The first person said that measures under consideration include increasing import duties on Chinese EV batteries, implementing stringent quality control standards, and promoting domestic production through incentives and support for local manufacturers. “We have our directorate general of trade remedies (DGTR) system in place, and our anti-dumping measures are operational.
If any dumping occurs, we have an institutional mechanism to address it," the first person added. “We are implementing policies to ensure that India has sufficient capabilities for the production of EVs and batteries," the second person said. Under the revamped EV policy, India has opened its doors to all EV manufacturers, including those from China.
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