The Aryavarth Express
Agency(New Delhi): Tata Motors, one of India’s leading automakers, is considering importing its Jaguar Land Rover (JLR) luxury electric vehicles (EVs) under a recently announced government policy that reduces import taxes for companies willing to establish local manufacturing facilities, according to two Indian government sources.
The policy, introduced in March, lowers import taxes from as high as 100% to 15% on certain EV models, provided the carmaker invests at least $500 million and sets up a domestic factory within three years. While Tata had initially urged the Indian government not to lower duties to protect the domestic industry, the company is now discussing the possibility of applying for incentives under the EV policy alongside JLR, as per a third source familiar with the company’s plans.
If realized, Tata’s plan would make it the first local carmaker to take advantage of the policy designed to increase the adoption of electric vehicles in India. Tesla is also expected to start importing its cars to India and make an investment in the country, as previously reported by Reuters.
While Tata is solidifying plans to import JLR EVs from the United Kingdom, the company is also considering manufacturing JLR cars at a proposed $1 billion plant in the southern state of Tamil Nadu. However, it remains unclear which specific JLR models Tata will produce at this facility.
On Thursday, the Indian government met with representatives from various car manufacturers, including Hyundai Motor Co, Vinfast, Volkswagen, BMW, Mercedes, Maruti Suzuki, Mahindra and Mahindra, Toyota Motor Co, and Tesla, to begin finalizing a framework for the policy. The official stated that at least a couple more meetings would follow.
Tata currently dominates India’s small but growing EV market, with electric models accounting for approximately 2% of total car sales in 2023. The government has set a target of 30% EV market share by 2030, despite slowing demand in key markets such as the United States and China.
As Tata explores the possibility of importing JLR EVs under the new policy, it remains to be seen how this move will impact the domestic EV market and the company’s overall strategy in the rapidly evolving automotive landscape.
