New Ev Policy (ठ«à ¥‹ à¤ÿà ¥ ‹à¤>à¤à¤à¤>- à¤> °- à¤> ¥ ठ¥ ठ¶ à¤®à ¥ € डिया)
New Ev Policy (ठ«à ¥‹ à¤ÿà ¥ ‹à¤>à¤à¤à¤>- à¤> °- à¤> ¥ ठ¥ ठ¶ à¤®à ¥ € डिया)
India’s new ev policy: The government’s new EV policy, which proposes to reduce the import duty from 110% to 15%, may have mixed effects for Indian automobile companies. This effect can be seen in both positive and negative forms. This decision can be seen having a possible negative impact on Indian automaker companies. This was given by experts
According to the information, Indian companies will face tough competition due to the entry of Tesla, BYD, Mercedes and other foreign companies. Companies such as Tata Motors, Mahindra and MG Motors, which are already strong in the EV market, will need to change their strategies.
Sales of Indian companies will affect
If Tesla and other foreign companies launch their EVs at a competitive price, the sale of Indian companies may be affected. For example, vehicles like Tata Nexon Ev and Mahindra XUV400 which have strong hold in the market can be affected by new competition. Indian automaker companies will have to invest more to compete with foreign companies. Companies such as Tata, Mahindra, and Ola may have to spend additional capital to improve battery technology, charging infrastructure and production capacity.
Another impact may also have that at present, Tata Motors and Mahindra dominate the EV market, but the entry of foreign brands may reduce their market share.
Companies like ByD and Hyundai are already launching EVs in the Indian market, increasing the threat to domestic companies. The main objective of this policy is to encourage EV manufacturing in the country and attract leading manufacturers like foreign companies, especially Tesla to enter the Indian market.
Reduction in proposed import duty
(Photo courtesy- social media)
Under the new policy, the government has proposed to reduce the EV import duty from the current 110% to 15%. This decrease will apply to vehicles that cost more than $ 35,000 costs, insurance, and transportation (CIF). The move aims to help foreign EV manufacturers to present their products at competitive prices in the Indian market.
Terms of investment and local production
To avail this concession in import duty, companies have to fulfill the following conditions:
Minimum investment
Companies will have to invest $ 500 million (about ₹ 4,150 crore) in EV manufacturing within five years from the date of approval. Local Price Promotion: Within three years, 25% local value will have to be achieved, which will have to be increased to 50% in five years.
Charging infrastructure investment
Companies can count only 5% of their total investment in setting up charging networks, making the main focus on vehicle manufacturing.
Possible impact on Indian EV industry
Through this policy, the government aims to promote EV manufacturing in the country and attract foreign investment. However, there are mixed reactions between local automobile manufacturers about this move. Some experts believe that the arrival of companies like Tesla will increase competition in the Indian EV market, giving consumers more options. On the other hand, some believe that due to high prices of imported vehicles, it will have a limited impact on local manufacturers.
Investors and industry experts are advised to monitor the development of this new policy, as it can significantly affect the direction and dynamics of the Indian EV market.
Possible benefits to Indian automobile sector
(Photo courtesy- social media)
The arrival of Tesla and other foreign companies will inspire Indian companies to become technically advanced. Domestic companies will focus on models with new battery technology, autonomous driving and better range.
When large foreign companies come to the Indian market with the possibility of rapid development of the EV segment, the EV industry will be promoted and more consumers will be motivated to buy EV. Indian companies will also benefit from this as the entire sector will increase rapidly. Apart from this, there is also expected of bounce in EV component manufacturing.
Foreign companies have been given the conditions of local manufacturing, which will benefit Indian companies from EV Component Supply. Companies like Tata, Mahindra, and Bajaj can invest more in the manufacture of EV parts and batteries.
A cut in import duty 15 % will increase investment in charging infrastructure. Motoring foreign companies to invest in India will expand the charging network. This can provide new opportunities for Ola Electric, Tata Power and other companies in the installation of charging stations.
Indian companies’ response and strategy
With the process of making prices competitive, Indian companies will be forwarding to reduce the cost of EV and focus on launching more affordable models. Tata Motors has already launched cheap EVs like Tata Tiago Ev, and other Indian brands can also take such steps in future. This initiative will also speed up the premium EV segment. If companies like Tesla arrive in India, Indian companies will also focus on launching high-end EV models.
Mahindra has already announced its Born Electric Series (Be Series), which can be launched by 2025-26. Apart from this, there will be emphasis on localization.
Indian companies will produce more local production, which will help them reduce costs. Tata and Mahindra are investing in battery manufacturing to control the cost of EV.
This decision is a boon or loss for Indian auto sector?
This new policy of the government is a challenge for the Indian EV industry and also an opportunity. If you challenge, domestic companies will have to compete with Tesla, ByD and other foreign brands. At the same time, the EV market will increase rapidly in the list of opportunities from this decision, which will also give Indian companies a chance to improve and innovate their products.
Indian companies will now have to focus on better technology, affordable prices and strong charging infrastructure, so that they can maintain their position in this competition.
