Hyundai Motors India seconds the recommendation of Tesla Motors for reduced import duty. Reduced import tax would result in higher volumes with feasible growth for the Electric Vehicles to be a success in India. Stated the South Korean leading automobile manufacturer Hyundai on Tuesday.
For the EV variant to be successful in India 2 major sectors need to be addressed. The charging infrastructure and concession in the import tax.
We learnt Tesla has requested for reduction in import duty on CBU’s. Reduced import tax will be exceptionally useful for the OEM’s to arrive at an economic scale in this extremely price competitive segment.
Until the companies develop the EV components locally and other infrastructure. Importing EV’s would create some potential market in the country – stated S S Kim Hyundai Motors India MD & CEO.
In India, there is still an apprehension related to EV’s & the charging infrastructure compared to other global markets like China, South Korea & few European countries. The 4-wheeler segment for EV’s still needs time to be accepted compared to the 2-wheelers & 3-wheelers.
With the support of the Indian Government, the EV market can reach a decent level in 2 years. If some subsidies are provided under the FAME scheme.
“25 years ago when we entered the Indian market we were accompanied by 50 tier 1 vendors. Presently they operate globally from India. We shall either find someone locally or identify our global partner to be operational from India as done in the past. Which is the kind of ecosystem we wish to set-up in India.” – stated Kim.
Reduction in duties is just one aspect, wherein the infrastructure for charging stations is a major concern. The support by the Indian government shall play a vital role in the future of Electric Vehicles in India.