Context :
Keen
on India drive but high import duty remains a roadblock : Musk / Business
Line / 25 July
Extract :
Ø
"First
you pay import duties
(100 per
cent) then you pay GST which
is 48 per cent and then you have registration tax of another 15 per cent.
Ø
So, it’s
duties on duties on duties — a multiple layers of duties which is keeping this
sector very niche,” Balbir Singh
Dhillon, Head of Audi India, told BusinessLine
recently. That is why for the last five-six years, the luxury car market
is stuck in the range of 30,000-40,000 units a year, he said.
Ø Former Managing Director of Mahindra and
Mahindra Pawan Goenka came out in support of Musk's demand. "Tesla wants a
reduction in the import duty. I think the Government should consider lowering
100 per cent slab to 60 per cent for electric vehicles."
Govt
open to Sops if Tesla decides to Make in India / Times
of India / 27 July 2021
Extract :
Ø
The Centre may consider reducing import duty and other incentives
for Tesla if the US-based electric-car maker decided to manufacture its cars in
the country. Last week, Tesla founder Elon Musk said that the company wants to
launch electric vehicles (EVs) in India.
Ø
Replying to a question about the prospect of sales in India,
Musk said on Twitter: “We want to do (launch EVs in India) so, but import duties are the highest in
the world by far of any large country! Moreover, clean energy
vehicles are treated the same as diesel or petrol, which does not seem entirely consistent
with the climate goals of India.”
Ø Citing an unnamed
official, ET reported that the government may take a fresh
look, especially if the company will set up a manufacturing place in the country,
emphasising that any order in regard will be sector-specific and
not for a specific company.
Ø Discussions are underway with large
multinational companies to set up productions units in India. The goods and
services tax (GST) on EVs has been reduced to 5 per cent
from 12 per cent while that on chargers and charging stations for electric cars
has been cut to 5 per cent from 18 per cent.
My
Take :
Ø The following comparative tabulation
may not be the ACTUAL position and I urge Society for Manufacture of Electric Vehicle ( SMEV / info@smev.in ) to prepare and publish
the current real picture
Ø SMEV
may also expand the tabulation by adding “ Incentives Applicable “ data for
each type of Electric Vehicles (both, under FAME II and additional offered by
various States under their respective EV Policies ). I am assuming that these
INCENTIVES / CONCESSIONS would equally apply to , both , the fully imported
cars as also for locally manufactured cars. If this assumption is wrong, SMEV
should clearly bring out its true impact on the final prices in the hands of
the buyers
Ø Just
reducing IMPORT DUTY ( from 60 % to 40 % for Model 3 of Tesla ), is unlikely to
threaten the local EV Manufacturers , since, even after such a reduction, Tesla Model 3 would be 4 – 5 TIMES more costly than a locally manufactured Electric
Cars . Hence local manufacturers will continue to enjoy huge price protection
Ø Given that :
# The size of the market for Tesla Model 3 type of LUXURY CARS is absolutely
miniscule
# Even after conceding Tesla’s request ( and some more, which Elon might
have failed to articulate
than 10,000 Model 3, posing no danger to our local manufacturers,
Central
Government should send a clear “ YOU ARE MOST WECOME “ message to EV manufacturers of the World, by
quickly announcing :
# Import duty reductions ( 100 % to 50 % and 60 % going down to
30 % )
# GST at 5 %
# Waiver of Registration Fees
Dear
Shri Gadkariji,
It is time to make an offer which the
EV manufacturers around the World, cannot reject !
With regards,
Hemen Parekh / hcp@RecruitGuru.com / 27
July 2021
|
Car
Type Ø > Ø > |
|
ICE
Luxury Imported |
|
ICE
Luxury Imported |
|
Locally
manufactured Electric cars |
|
|
Base Price ( CIF ) |
|
$
40,010 Rs
29.8 L |
|
$
39,990 Rs
29.7 L |
|
$
16,000 ( Rs
12 lakh ) |
|
|
Taxes Applicable |
|
|
|
|
|
|
|
|
Add Import Duty |
|
100 % Taking
total to $ 80,000 ( Rs
59.5 Lakh ) |
|
60 % Taking
total to $ 64,000 ( Rs
44.6 Lakh ) |
|
NIL |
|
|
Add GST |
|
48 % Taking
total to $ 118,400 ( Rs
88 lakh ) |
|
48 % Taking
total to $ 94,720 ( Rs
70.4 lakh ) |
|
5 % Taking
the total to Rs
12.6 Lakh |
|
|
Add Registration Tax |
|
15 % Taking
total to $ 136,10 ( Rs
101.25 lakh ) |
|
15 % Taking
total to $ 108,928 ( Rs
81 lakh ) |
|
0 % Total
remains at Rs 12.6 lakh |
|
|
Add Local Dealer Margin |
|
10 % Taking
total to $ 149,776 |
|
10 % Taking
total to $ 119,820 |
|
10 % Taking
the total to |
|
|
TOTAL |
|
Rs
111.4 lakh |
|
Rs
89.11 lakh |
|
Rs
13.86 lakh |
|
Related Readings :
Ø Can
TESLA beat MATAM ? ……………………………………….[ 24 July 2021 ]
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