Luxury in electric cars means range and (much) more
Tesla Roadster, with ‘space-inspired attributes’, and an incredibly high speed of 0-60 mph (0-97 kmph) in less than a second has ignited speculation within the automotive industry globally.
What specific features could embody these premium attributes in an electric car, and how might they influence India’s burgeoning electric luxury car market?
While the next-generation Roadster with record-setting acceleration, range and performance might offer a glimpse into the future, US-based Tesla, Vietnam’s Vinfast, China’s BYD and many other global luxury car makers may bet on premium feature-led electric models for the Indian market.
Recent policy changes have allowed automakers to import electric vehicles (EVs) priced at $35,000 or higher at a reduced import duty of 15%. This would, however, be contingent on automakers committing to invest $500 million within three years to establish manufacturing plants in India.
This policy, with a ‘floor but no ceiling’, throws open the door for imports of luxury electric vehicles as completely built-up (CBU) units. Most of the luxury EV makers in India have been pursuing a CBU-led strategy so far, which attracts more than 100% import duty. For instance, Mercedes-Benz sells three electric cars in India, out of which only one is assembled locally.
In the case of BMW, all five electric models are CBUs. Several other luxury car makers such as Audi, Volvo, JLR are present in the Indian EV market. Luxury EVs had about 7% share of the total luxury car market last fiscal, a figure which
