Unlikely
( MATAM = Maruti –
Ashok Leyland – Tata – Ather – Mahindra )
Context :
Tesla
seeks lower taxes on sale of imported EVs in India: Report /
Business Standard / 24 July 2021
Extract :
Tesla Inc.
has sought lower taxes on import of electric vehicles in India
The California-based maker of electric vehicles has written to the transport and
industry ministries for reducing import duty on
electric cars to 40 per
cent from the current
range of 60 per cent-100 per cent for vehicles depending on their import
value
Earlier, Reuters reported that Tesla has pitched to Indian ministries to reduce
federal taxes on imports of fully assembled electric cars.
Tesla is seeking to enter India, one of the world’s biggest
emerging car markets, where electric vehicles account for less than 1 per
cent of new passenger vehicles and two-wheeler sales compared with 5 per cent
in China.
The company also wants the government to scrap the 10 per cent
social welfare surcharge on electric vehicles which was introduced in 2018.
Earlier this month, transport minister Nitin Gadkari had said
Tesla would soon enter the Indian market and the government was already working
on building electric charging stations along some highways.
The company has said the reduction in duty will help it make
significant direct investments in sales, service, and charging infrastructure.
The company plans to significantly increase procurement from India for its
global operations and will evaluate broader investment in manufacturing and
research and development following a successful launch, the company said in the
letter.
==================================================
My Take :
[ A ] IMPORT DUTY :
Ø Import Duty is a Central subject . If a reduction is
offered to Tesla, it would need to be offered to all fully
imported electric cars, from all over the world.
This is not
like the incentives / concessions that Gujarat Government offered to TATA , a
few years ago
Ø
Current
Import Duty rates for fully imported Electric cars are :
# Priced above
$ 40,000 ………. 100 %
# Priced below
$ 40,000 …………. 60 %
Ø
Tesla Model 3 ( for sale in India )
is expected to be priced at…..Rs 70 Lakh ( source > Carwale.com )
[ B ] TESLA PRICES :
Ø
Model
3 sells in USA currently
for Rs 29,76,345 ( $ 39,990 as per Tesla website )
Ø
On
this, Import Duty @ 60 % will be……………………Rs
17,85,807
Ø
Taking
the total price in India to……………………………Rs 47,62,152
[ C ] INDIAN MARKET FOR PASSENGER CARS :
Ø
No
of cars sold in India in 2020-21………………………….. 27,11,457
Ø
Of
the above, no of Electric
Cars was………………………..
4,588 ( 0.0016 % )
[ D ] MARKET SHARE OF VARIOUS INDIAN CARS :
( Source : Average Price Tag Of Cars Sold In India Is Around ₹ 7.7 Lakh ) / All Indian
Petrol – Diesel Cars
|
Srl No |
Brand |
2018
ave ex showroom price in Rs Lakhs |
2018
Vol ( Nos ) |
% of
total |
Section
% |
|
Sec A |
|
|
|
|
12.3 |
|
1 |
Mitsubishi |
29.5 |
296 |
- |
|
|
2 |
Jeep |
18.7 |
18,319 |
0.05 |
|
|
3 |
Skoda |
18.1 |
16,692 |
0.05 |
|
|
4 |
Toyota |
17.7 |
1,51,480 |
4.50 |
|
|
5 |
Mahindra |
10.5 |
2,27,518 |
6.80 |
|
|
Sec B |
|
|
|
|
25.6 |
|
6 |
Ford |
10.0 |
97,804 |
2.9 |
|
|
7 |
Volkswagen |
9.0 |
37,010 |
1.1 |
|
|
8 |
Honda |
8.8 |
1,74,859 |
5.2 |
|
|
9 |
Hyundai |
8.2 |
5,50,002 |
16.4 |
|
|
10 |
Fiat |
7.9 |
743 |
- |
|
|
Sec C |
|
|
|
|
61.8 |
|
11 |
Nissan |
7.7 ( Also Ave of entire
Mkt ) |
7,211 |
0.2 |
|
|
12 |
Tata |
6.6 |
2,14,489 |
6.4 |
|
|
13 |
Maruti |
6.2 |
17,31,450 |
51.8 |
|
|
14 |
Renault |
5.4 |
82,368 |
2.4 |
|
|
15 |
Datsun |
3.4 |
34,375 |
1.0 |
|
|
|
|
GRAND TOTAL |
3,344,616 |
|
|
|
|
|
|
|
|
|
[ E ] PRICES
OF INDIA-MADE ELECTRIC CARS ( approx. ) – Rs Lakhs
Ø
Hyundai
Kona Electric ……………………………………… 24
Ø
Audi
e-Tron………………………………………………………….100
Ø
Jaguar
i-Pace……………………………………………………….110
Ø Strom Motors R 3……………………………………………………4.5
Ø
MG
ZS EV………………………………………………………………23
Ø
Mercedes
Benz EQC…………………………………………….100
Ø
Mahindra E Verito …………………………………………………10.5
Ø
TATA Tigor EV…………………………………………………………11
Even after reduction of Import Duty from
60 % to 40 % ( approx. reduction of Rs 6 lakh ), Model 3 could
There is no way, Tesla could compete with
TATA – Mahindra – Strom !
Highly price-conscious Indian customers
may even go for new ICE cars which would be FAR CHEAPER than
[ F ] PRICES OF CHEAP CHINESE ELECTRIC CARS
Ø
In China,
Hozon Auto’s Neta N01 is one of a slew of low-cost EVs, including the
$8,950 e1 minicar from Warren Buffett-backed BYD Co. ( approx.. Rs 6.6 lakh )
Ø
Chinese
EV manufacturers have realized that ,
# In 5 years,
Indian EV market will be substantial
# It will be also be a highly “ Price Conscious “ market , where only Electric
Cars selling
for less than
State subsidy ) will find willing buyers
# To enter this market, they will need to bring into India, their own dozen
( + ) cheap
Electric cars
# Apart from a very low up-front price ( as compared to Tesla Model 3 ) ,
there is high
probability
their cars on LEASE basis to EESL / CESL ,something which Tesla may
not offer
Related Readings :
No comments:
Post a Comment