NEW DELHI: The Tata Group, which leads the electric car market in India, has opposed a cut in import duty on electric cars — as demanded by Elon Musk and his company Tesla — saying that the move “goes contrary” to the government’s FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicle) policy, which seeks localisation and indigenisation of green vehicles.
Shailesh Chandra, president of Tata Motors passenger vehicles business unit, said incentivising of localisation remains the key to drive higher adoption of electrics and making them affordable, and thus efforts should be made to make the products and components in India against subsidised imports.
Asked whether the government should consider demands made by Tesla and some other manufacturers such as Hyundai to reduce the import duty for electrics, Chandra told TOI, “… it goes slightly contrary to that direction of the FAME programme, how it has been articulated and the direction it has set.”
Chandra said that like many other carmakers in India, Tata Motors — which currently accounts for over 90% of EVs sold in the passenger car segment through Nexon — has taken the FAME policy as “one single reference” as they work on their product expansion plans.
“FAME has really focused on two aspects. The first aspect is bringing affordable EVs… which are less than Rs 15 lakh. The second very clear articulation is localisation. Because if you have to really drive electrification on a sustainable basis, till you don’t ensure a road map for local value addition, this will not be sustainable.”
