|12th October 2016, 12:37||#1|
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Mahindra Electric mulling over a China entry
Mahindra Electric is planning to enter the growing electric car market in China. The company is currently looking for a potential Joint Venture with a local firm. This information was revealed by the Chief Executive Officer of Mahindra Electric, Arvind Mathew. The manufacturer currently sells its cars in India and the UK.
Over the past couple of years, the Chinese automotive industry has witnessed a major inclination towards hybrid, electric, and fuel-celled cars. This has lured many automakers to try to get a share of the growing pie. Mahindra appears to be doing the same through its Electric car division.
The Chinese Government is aiming to put over 50 lakh electric cars on the road by the year 2020. To fulfill this target, various customer subsidies have been implemented to motivate people to venture towards non-conventionally powered cars. The Government has also issued multiple research and development grants, and has even boosted construction of charging infrastructure, in order to make way for the future of electric cars.
In order to enter the Chinese market, it is necessary for Mahindra to form a Joint Venture with a local company in order to manufacture cars in the country itself. The reason behind this lies in the fact that imported vehicles in China attract a 25% duty and are not eligible to benefit from Government subsidy.
Source: ET Auto
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Last edited by dZired : 12th October 2016 at 12:41.