Mahindra wants an even playing field for EVs in the wake of Tesla's aspirations to enter India

Mahindra wants an even playing field for EVs in the wake of Tesla's aspirations to enter India

Mahindra wants an even playing field for EVs in the wake of Tesla's aspirations to enter India

As New Delhi tries to court automakers like Tesla, Indian manufacturer Mahindra & Mahindra has informed the government that there should be fair competition between domestic and international businesses and that local production should be encouraged, according to a senior official.

While the government evaluates Tesla's ambitions to join the market, Mahindra and Tata Motors have quietly put pressure on Indian authorities to keep the 100% import tariff on electric cars in place in order to safeguard indigenous businesses and their foreign investors. is, as was reported by Reuters a month ago.

In response to questions on Tesla's arrival and New Delhi's proposed strategy of lowering import duties, Mahindra Managing Director Anish Shah said that his business has informed Indian officials that international EV manufacturers are interested in making investments in India. Must be inspired to act.

In an interview at the World Economic Forum's annual gathering, Shah said, "It should be a level playing field because it is important to invest in India," without mentioning Tesla.

"Our vision is essentially that establishes a strong industry in India, so that we do not have a situation where manufacturing is performed outside India, and India just becomes an importer of products," he said.

Only 82,000 of the 4 million automobiles sold in India last year were electric vehicles (EVs), despite the new market seeing a 115% increase in sales from the year before.

Around $400 million has been secured for Mahindra by British International Investment and Temasek in Singapore. In 2021, private equity firms TPG and ADQ, the state holding company of Abu Dhabi, spent $1 billion in Tata.

No sooner than 2029, according to Shah, does Mahindra want to list its electric vehicle division, "because we need to be able that aired significant success in that business."

He said, "Electricity is the future for us."

Tesla has advocated for reduced import duties for electric vehicles while also proposing to establish a manufacturing in India. According to Reuters, India is developing a new policy that will lower import duties on electric vehicles to at least 15% for some businesses who commit to producing the vehicles domestically.

However, this has caused concern for the Indian business, as insiders claim that Tesla's arrival may imperil future funding opportunities for Indian EV firms, which depend on a stable and advantageous import tax policy.