Following Tesla, Hyundai also proposes to reduce import tariffs on electric vehicles

Saptarshi Mondal

Earlier last week, U.S. electric car manufacturers Tesla It is reiterated that if the company succeeds in importing cars, the company is willing to set up a factory in India. However, in order to succeed in importing electric vehicles, CEO Elon Musk emphasized that the government needs to drastically reduce import tariffs on fully assembled electric vehicles.

Hyundai Motor IndiaIndia’s second-largest automaker now supports Tesla, saying that any tax cuts on imported electric vehicles will be warmly welcomed because it will help automakers produce some much-needed output and reach a certain viable scale.

  • Hyundai recently opened a new corporate headquarters in Gurgaon
  • The company is committed to developing more affordable, locally developed electric vehicles for India
  • Emphasize more government investment in charging infrastructure

Hyundai Motor reiterated the need to cut taxes and encourage electric vehicles

Hyundai, recently launched a new headquarter In Gurgaon, support Tesla’s call to reduce tariffs on imported electric vehicles. The company pointed out that government support for tax cuts and increased investment in charging infrastructure are the two most critical aspects of India’s faster adoption of electric vehicles.

SS Kim, General Manager and CEO of Hyundai Motor India, said: “We heard that Tesla is seeking some tax cuts on CBU imports. Therefore, this will greatly help manufacturers in this highly competitive price. Realize certain economies of scale in market segments.”

Kim further added: “It will take time for manufacturers to localize 100% of electric vehicles. We are developing affordable mass-market electric vehicles made in India, but at the same time, if the government allows the reduction of tariffs on imported CBUs, it will It is very helpful for all of us to create some market demand and reach a certain scale.”

This is behind Tesla Write to Indian ministries, Seeking to reduce the central tax on imports of fully assembled electric vehicles to 40%. Currently, the import tariff for cars priced below 40,000 US dollars is 60%, and for cars priced higher than 40,000 US dollars, it is 100%. It also depends on factors such as engine size, insurance, and freight.

Musk responded to a tweet about Tesla’s launch in India: “We want to do this, but import tariffs are by far the highest of any major country in the world!” He further added that even if the government is digging “In addition, clean energy vehicles are treated the same as diesel or gasoline, which does not seem to be completely consistent with India’s climate goals.”

Although electric four-wheelers still need some time to gain traction, Kim pointed out that the country has great potential in the electric two-wheel and three-wheeler market. However, charging infrastructure is still the biggest challenge facing automakers, and the resulting mileage anxiety is the biggest concern for customers.

Kim said: “The government must not only reduce tariffs, but also increase investment in charging infrastructure, which is critical to the future of the country’s electric vehicle market. Customers are most concerned about range and charging options. In this regard, we Need strong support from the government.”

Kim believes that with the right incentives for customers and support for the industry, the market can reach a certain size within two years. He said: “If we have some meaningful support, even for private customers, it will be very helpful. If demand exists and the market starts to grow, I think we can reach a meaningful point of scale within two years. We can manage from now on.” However, until this point is reached, government support is essential to promote the development of electric vehicles in India.

Modern India: Coming soon

As for Hyundai’s lineup of cars and SUVs in India, the last major launch of the automaker’s domestic market was the new Alcazar three-row SUV last month.Hyundai Motor revealed that in the first month of its launch, this SUV received more than 11,000 bookings, Delivered more than 5,600 units to customers.

The next major release of the brand is likely to be a new mini SUV code-named AX1. The model is expected to make its international debut later this year and is expected to go on sale under the brand’s name in the Korean domestic market. Casper. Hyundai Motors will have some time to launch mass-market electric vehicles in India.

See also:

Hyundai Creta facelift: new styling details revealed

Hyundai Alcazar vs Tata Safari comparison video

Hyundai Alcazar: Which variant to buy?

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