Maruti Suzuki India Chairman RC Bhargava said India's domestic EV makers have sufficient „safety measures“ in place to minimize influence from foreign companies like Tesla.
The center announced Friday that it would lower import taxes on certain electric vehicles for companies that commit to at least $500 million in investment and manufacturing equipment within three years, potentially strengthening Tesla's market entry plans. .
„The new EV policy is aimed at bringing new technologies to India. Since this policy is for high-end and luxury cars, we don't expect it to affect domestic manufacturers,“ Bhargava told CNBC-TV18. he told Business Standard. Two separate interactions.
„If there is any negative impact or damage, it will be minimal,“ he said.
The policy is seen as a big win for Tesla, as it is consistent with what Tesla has been lobbying for in New Delhi. The automaker offered to build the factory last July, according to people familiar with the matter, while Chief Executive Officer Elon Musk wanted to lower import taxes, the world's highest.
Mr. Musk has been trying to enter the Indian market for years, but New Delhi has been reluctant unless it commits to local manufacturing. Tesla officials have visited India several times in recent months, and Musk also met with Prime Minister Narendra Modi last year.
Companies that meet investment and manufacturing requirements will be allowed to import a limited number of EVs at a reduced tax rate of 15% for vehicles costing more than $35,000. India currently imposes a 70% or 100% tax on imported cars and EVs, depending on their value.
Tesla's cheapest car, the Model 3, starts at $38,990 in New York, according to Tesla's website.