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German automaker, Volkswagen AG has asked for lower import duties on electric cars in India to boost demand for electric vehicles (EVs), according to reports. 


The carmaker is awaiting lower import duties, stable taxation policies and long-term incentives to explore EVs for the Indian market from its Volkswagen and Skoda brands. 


The current taxation policy levies a tax as high as 100pc on fully built imported cars including EVs, but the administration is discussing a proposal to reduce rates as low as 40pc after Tesla’s appeal for a reduction in import taxes. 


This had led to a divide in the auto industry between global players like Daimler’s Mercedes-Benz and Hyundai who are in support of the proposed cuts and domestic rivals such as Tata Motors, who are opposing them as they would affect the country’s push to increase local production. 


While the German carmaker is targeting the Indian market for its EVs, a lag in setting up the necessary infrastructure like charging stations could slow down the targeted trajectory of the transition to battery-powered cars. 


Volkswagen began the sales of three Audi electric SUVs in July priced from about $133,000, which was too high for the Indian market where 95pc cars are sold for less than $20,000. However, the carmaker plans to launch its luxury Porsche Taycan EV in India, next year. 


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