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Old 3rd February 2020, 13:13   #16
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Default Re: Budget 2020: EVs not made in India to get costlier

My first comment on Team BHP

This proposed custom duty hike is part of the phased manufacturing plan announced early 2019. I am sure companies planned accordingly but it is indeed regressive move for EV industry which is at nascent stage. The Govt should have let the EV makers realise volumes, build confidence in them and then slap duty hike. Giants like BYD awho struggled to sell their T3/M3, now foraying into electric MHE will find it difficult to launch their truck and passenger vehicle segments. These folks have everything in their portfolio, but when we visited them last week they express dissent in such hasty move against automakers. Even if Tata and Mahindra making Evs, they are easily 5 years behind BYD in tech and superior quality. Tata Nexon EV already receiving negative range feedback (some on twitter claiming to struggle reach 150 Kms)

We are dealing with EV fast chargers in Chennai, which currently attracts 0% but going further by April 2021 it will go to 15%. Nothing is going smooth in Indian EV industry in my opinion
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Old 4th February 2020, 10:34   #17
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Default Re: Budget 2020: EVs not made in India to get costlier

The government might have thought about employment generation too before considering such taxes. Any product which is made outside the country and selling in India, generate income to the company,profits to the importer and taxes to the government, but the employment opportunities are created in their respective countries. By promoting manufacturing in India,which effectively attract investments,more employment opportunities can be created, and improve the overall economic status in individual level.
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Old 4th February 2020, 11:18   #18
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Default Re: Budget 2020: EVs not made in India to get costlier

I feel this move will not allow manufacturers to bring quality vehicles into our market.

Remember, Toyota, Honda, Ford, Volkswagen, etc. have very good quality vehicles in their portfolios abroad ; but they are hesitant to launch it here. Reason is the vehicles will give a sticker shock to the buyers in our country. In the immediate past we have an example of Volkswagen Polo GTI discontinued in India.

Similarly will be the case with EVs in India if government keeps increasing taxes for them. Reputed manufacturers with proven products will refrain from launching quality products here. Because India will be a lucrative market for them, they will try to cut corners and launch a product with half-hearted attempt.

Moreover, we will also be at mercy of local manufacturers who will have a free run without major competition in site. Don't get me wrong, I want local manufacturers to do well but for time being they aren't trying hard enough to make a niggle free first generation products.

Quiz for everyone :
Which product will you buy?
1. A local product which has known niggles?
2. A proven product but has premium of 10 to 15 lakhs as compared to other similar available local products?

Most of us will think " Why to waste money now? Let's wait and watch for proven products to be affordable?"
And the vicious cycle of waiting and watching will continue for another 20 years until a ground breaking VFM product is launched. This will set us back by another 20 years.
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Old 4th February 2020, 14:58   #19
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Default Re: Budget 2020: EVs not made in India to get costlier

I think this is the right move from both the economy point and from increasing the volume point. Unless locally sourced, EVs are not going to become cheaper. To have quick adoption and increased volume, you need acceptable pricing. The fact that Kona and MG-EZ tried whetting with their international model, and quickly got sold out and ran into a huge waiting queue, gives them enough validation of a big market presence.

Well, for comparison, China who is one of the biggest EV markets, did not allow foreign EV makers in easily for long either. https://www.forbes.com/sites/bertels.../#1733228263f3.
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Old 4th February 2020, 23:47   #20
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Default Re: Budget 2020: EVs not made in India to get costlier

Well, the only sad thing that I can add to this is that the 10% chance which we had of seeing Tesla enter India anytime soon just got dropped to 1%. Shame.

It's nice that you want to push Indian manufactured EV's. But what about the premium market? I'm pretty sure now cars like the E-Tron are going to bomb on launch considering how expensive they will be. The only motivating factor of less tax to both consumers who buy the cars to the manufactures that release the cars is now lost.

Quick question tho. Will the extra tax collected from international EV makers be used by the govt to improve the electric car charging infrastructure?

Last edited by Starfire : 4th February 2020 at 23:55.
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Old 5th February 2020, 00:07   #21
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Default Re: Budget 2020: EVs not made in India to get costlier

This was always on expected lines considering the push for localisation for Evs and nothing bad in that sense at all. I am sure both MG and Hyundai can absolve this hike at the current pricing they are offering Zs ev & EKona. Achilles heal for Evs is the Li-ion battery packs until they are localised in India, Ev manufacturing will face challenges on the cost front.
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Old 5th February 2020, 02:52   #22
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Default Re: Budget 2020: EVs not made in India to get costlier

Putting the cart before the horse is going to make transition slower. They should be able to put caps on number of tax-free cars sold in a year. If a manufacturer sells many cars, adoption will be faster and they will want to localize production.
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Old 5th February 2020, 04:12   #23
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Default Re: Budget 2020: EVs not made in India to get costlier

Quote:
Originally Posted by sri_tesla View Post
Otherwise, you would see a ton of Chinese manufacturers continue to import EVs instead of setting up local manufacturing.
I really don't understand the problem with that. We are currently selling a few hundred (at best) electric cars a month. Which company will invest in creating new factories to cater to this demand. For companies that are already in India, it just makes life easier.

The truth is globalisation has created a situation where the best and sometimes cheapest manufacturer isn't always in your home country. Accept it and move on. Don't force an investment in areas where you don't have an advantage
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Old 5th February 2020, 17:00   #24
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Default Re: Budget 2020: EVs not made in India to get costlier

Quote:
Originally Posted by landcruiser123 View Post
Putting the cart before the horse is going to make transition slower. They should be able to put caps on number of tax-free cars sold in a year. If a manufacturer sells many cars, adoption will be faster and they will want to localize production.

This makes lot of sense. Tesla also received such kind of benefits (subsidy etc.) on fixed number of cars only.
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