We had reported to you recently that Tesla is facing some problems even before its official debut in the country. Elon Musk, CEO, Tesla Inc., had shown concerns regarding high import duties in the country. He had mentioned that import taxes in India are considerably higher than any other large country in the world. He also pressed on the fact that setting up a factory in the country would completely depend on the success of imported vehicles here. We have written a detailed story on this which you can read by clicking on the link below. After Elon shared his concerns, we are seeing mixed reactions from prominent people in the industry, including Seon Seob Kim, Managing Director, Hyundai Motors India. In today’s article, we will look at what is SS Kim’s take on the whole scenario of car imports in India. Let’s go.
What SS Kim has to say about the India car imports situation?
“We have heard that Tesla is seeking some duty cuts on imports of CBUs. So, that would be very helpful for the OEMs to reach some economy of scale in this very price competitive segment. It will take OEMs to localize EVs by 100%. We are developing Made in India affordable mass-market EV but at the same time if the government allows some reduction in the duty on imported CBUs that would be very helpful for all of us to create some mass-market demand and reach some scale”.
SS Kim has supported Elon Musk’s comments on the import duties in the country. SS Kim said that lowering import duties on electric vehicles would be beneficial for OEMs. Lower import duties will allow them to improve EV volumes and market penetration till the time OEMs are ready with 100% localized EVs for the country. SS Kim’s comments also indicate the fact that with localised battery components and other necessary infrastructure, EVs would become considerably affordable, as compared to the current scenario of electric vehicles, especially four-wheelers in the country. Apart from this, SS Kim’s comments have also given out a major piece of information; the brand is developing a mass-market Made-in-India EV.
What is Bhavish Aggarwal’s take on the whole situation?
On the contrary, Bhavish Aggarwal, CEO, Ola Cabs, strongly disagrees with both SS Kim and Elon Musk. He has pressed on the fact that OEMs should be encouraged to build in India and not just to import.
Ola will soon be launching its first electric two-wheeler in the country. We have written an article covering that as well. You can read it by clicking on the link below.
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