Volkswagen unites with Tesla in seeking lower EV import tax in India
Category: #headlines  | By Mateen Dalal  | Date: 2021-08-12 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Volkswagen unites with Tesla in seeking lower EV import tax in India

Volkswagen AG, the second-largest carmaker in the world, is calling for a reduction of import duties on electric vehicles in India to propel the demand for clean vehicles, resonating with Tesla’s recent pitch which has divided the auto industry in India.

Lowering duties on EVs even to 25% from present levels of 100% would not put the domestic players at risk, but would help to propel investment, as stated by the German carmaker’s India head.

MD of Skoda Auto Volkswagen India, Gurpratap Boparai, mentioned that the market for EVs should be quite large for investments to flow in and for that no restrictions should be imposed.

The German carmaker is considering EVs for India from its Volkswagen and Skoda brands but is anticipating lower import duties, long-term incentives, and stable taxation policies. The development of charging infrastructure will also impact its decision.

India levies taxes as high as 100%, on completely built imported cars, including EVs, but the government is considering the proposal to reduce rates to around 40% after Tesla called for a cut.

This has left the auto industry divided, with global players like Hyundai Motor and Daimler’s Mercedes-Benz supporting the expected cuts, but domestic rivals like Tata Motors opposing them, mentioning they would affect India’s push to increase local production.

Volkswagen is investing billions of dollars to switch to battery-powered cars, which it anticipates to account for half of its vehicle sales worldwide by 2030, to outshine Tesla as the world’s largest EV maker by 2025.

Boparai mentioned that he anticipated demand to arise similar to that in U.S. markets, where Tesla dominates sales of electric cars. But in India there was a requirement for affordable EVs and demand for that would start with corporate fleets or ride-hailing.

India is the fifth largest car market in the world and is on Volkswagen’s EV map. However, there is an expected delay in electrification as compared to China and Europe due to the high prices of battery-powered cars and shortage of local charging infrastructure.

Source Credits:

https://www.moneycontrol.com/news/business/companies/volkswagen-joins-tesla-in-call-for-lower-import-tax-on-evs-in-india-7312371.html

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More..

More News By Mateen Dalal

Celcom and Digi unite to drive digitalization for consumers, businesses

Celcom and Digi unite to drive digitalization for consumers, businesses

By Mateen Dalal

Axiata Group Bhd or Axiata and Digi.Com Bhd are anticipating the potential of their proposed merger company, which is expected to be known as Celcom Digi Bhd, for solidifying the capacity to accelerate digitization for businesses, consumers, and the ...

QRCS & WHO offer mental health support to Syrians affected by COVID-19

QRCS & WHO offer mental health support to Syrians affected by COVID-19

By Mateen Dalal

The representation office of the Qatar Red Crescent Society (QRCS) housed in Gaziantep, Turkiye will reportedly deploy three mobile mental health clinics in Syria. Backed by the funding from the World Health Organization (WHO), QRCS will ensure th...

Triple M pursues 1.5 GW of solar & wind energy projects in Egypt

Triple M pursues 1.5 GW of solar & wind energy projects in Egypt

By Mateen Dalal

Triple M is eyeing several projects in Egypt to help them produce electricity using renewable energy sources with a capacity of 1.5 GW inside and outside the country. It would be imperative to note that the projects being pursued by the company sh...