Tata Motors, which had previously opposed the government's efforts to reduce tariff barriers on luxury electric vehicles including Tesla, is now considering taking advantage of the new EV policy by importing its luxurious Jaguar cars at lower taxes
Tata Motors is reportedly planning to import luxury electric cars from its subsidiary Jaguar Land Rover (JLR) under a new government policy. This policy offers lower import taxes for companies that agree to set up local manufacturing facilities. According to Reuters, two government sources have confirmed Tata's plan. If Tata's plan is realised, it will become the first local carmaker to opt for this policy, which aims to promote the use of electric vehicles (EVs).
In March, the government of India announced a policy that reduces import taxes on some electric vehicle (EV) models from as high as 100 percent to 15 percent, provided the carmaker invests at least $500 million. It establishes a domestic factory within three years.
Initially, Tata had resisted the Indian government's proposal to lower duties to safeguard the domestic industry. However, a source aware of the company's plans has said that Tata and JLR are now in discussions regarding the possibility of applying for incentives under the EV policy. The source added that the talks are still in their early stages.
While Tata is firming up plans to import JLR EVs from the United Kingdom, it is also planning to manufacture JLR cars at a planned $1 billion plant in the southern state of Tamil Nadu. It remains unclear which JLR cars Tata will make there.
The official said the Indian government met with car industry representatives on Thursday to begin finalising a framework for the policy.
The meeting was attended by Hyundai Motor Co, Vinfast, Volkswagen, BMW, Mercedes, Maruti Suzuki (MRTI.NS), Mahindra and Mahindra, Toyota Motor Co (7203.T) and others. A Tesla representative was also present.