UK springs EV surprise in FTA talks with India

livemint.com:

₹33.30-49.9 lakh) price range in a surprising move, given that India had placed EVs on an exclusion list for concessions. The UK’s interest was thought to be in the luxury EV segment. For the UK, access to the Indian EV market remains a priority, and the $40,000-60,000 segment—the so-called premium segment—is thought to be a sweet spot for potential sales and market expansion.

However, New Delhi says it can only give concessions for luxury electric vehicles priced at $90,000 and above, the people cited above said. Currently, because of high import duties of 70% on imported fully built premium cars, the domestic market for EVs in the premium range is small, with Hyundai’s Ioniq 5, Kia’s EV6 and the BYD Atto 3 falling into this price bracket. Globally, models such as the Mini Cooper SE and the Nissan Leaf are also offered within the premium range.

However, the upcoming launch of new EV models by Tata Motors and Mahindra & Mahindra from late 2024 onwards could see a drastic expansion in the market for premium EVs. EVs accounted for 1.6%, or just over 43,500 units. of the Indian passenger vehicle market year-to-date in FY24.

However, the segment is likely to become highly competitive as the government weighs a proposal to lower duties for carmakers selling EVs priced at up to $35,000. EVs priced over $40,000 attract a 100% duty. Auto industry body Society of Indian Automobile Manufacturers and the ministry of commerce did not respond to Mint’s requests for comment.