Tata Motors Lobbying Over EV Import Tax Reduction Ahead Of Tesla’s Re-Entry In Indian Market: Report

A recent report from a news agency highlights that Tata Motors is putting pressure on Indian officials to maintain the current 100 percent import taxes on EVs (electric vehicles), as the government considers revising these taxes ahead of Tesla's re-entry in the Indian market.

According to a report by Reuters, Indian automaker Tata Motors seems to be lobbying against the reduction of EV import taxes. Tata Motors is undertaking these measures to maintain its market position dominance in the Indian EV market. The report highlights that even though the Indian EV market remains relatively small, with Tata accounting for 74 percent of the 72,000 electric cars sold this year, the prospect of Tesla entering the market has heightened the stakes.

This finding from the news agency comes ahead of Tesla re-entry in the Indian market and in the past Tesla has voiced a strong opinion regarding high import taxes in India. Tesla has also proposed setting up a local factory in India while seeking lower import taxes for its electric cars. India is contemplating a new policy that could reduce import taxes to as low as 15 percent for companies committing to local manufacturing. The Indian government, led by Prime Minister Modi, has been engaging in talks with Tesla since the PM met Tesla’s CEO Elon Musk in New York earlier this year.

Tata Motors has actively opposed this proposed policy, arguing that it could impact investors who assumed the current tax regime favoring local manufacturers would remain unchanged. Additionally, Tata argues that the growing EV industry in India needs more government support during its early growth stage.

The report also states that In the backdrop of these developments, other countries, such as Thailand, are also actively engaging with Tesla, underscoring the global significance of the negotiations taking place in India. The automotive industry and investors keenly await the formulation of a policy that will shape the future of electric vehicles in the country.

(With inputs from Reuters)