At present, India levies 100 per cent import duty along with CIF (Cost, Insurance and Freight) on fully imported cars valued above $40,000.
Electric Vehicle (Indicative Image)
Ola co-founder Bhavish Agarwal on Tuesday said he disagrees with Hyundai and Tesla, which have called for reduction in duty on electric vehicles imported into India. Along with this, he has expressed confidence in the ability to manufacture EVs indigenously in the country and attract global OEMs.
Ola is all set to enter the electric vehicles (EV) segment with the launch of its e-scooter. The company has announced an investment of Rs 2,400 crore to set up a factory in Tamil Nadu to manufacture these e-scooters. Bhavish Aggarwal tweeted, “Totally disagree with both. Let’s rely on our capability of indigenous manufacturing and attract global OEMs to manufacture in India and not just for imports. We will not be the first country to do so.
In fact, Bhavish Aggarwal was responding to a tweet about Hyundai Managing Director SS Kim’s statement in support of Tesla’s call to reduce duty on EVs imported into India. Kim said on Tuesday, “We have heard that Tesla is demanding some duty cuts on imports of CBUs. This will help in scaling up the business in this highly price competitive segment.”
He said that as long as companies are able to manufacture EV components and other infrastructure locally, EV import can help create a market in the country.
Import duty in India is the highest in the world
Last week Tesla CEO Elon Musk said that if the company is successful with imported vehicles in India, it may consider setting up a manufacturing plant later. Musk had said that at present the import duty in India is the highest in the world. He hoped that there would be at least a temporary relief on electric vehicles. Musk said this in a discussion with his followers on Twitter.
Hyundai and Kia jointly invest in Ola
Currently, India levies 100% import duty along with CIF (Cost, Insurance and Freight) on fully imported cars valued above $40,000. The rate of import duty on a car costing less than this is 60 percent. Interestingly, Korean auto company Hyundai and Kia together have invested around USD 300 million in Ola. This investment will be made for the development of electric vehicles and charging infrastructure.
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