- | 12:53 pm
Tata Motors may import JLR EVs, set up local plant
The Tatas are planning to set up a local JLR EV plant in Tamil Nadu to tap an upcoming lower tariff policy, says report
Tata Motors Ltd plans to import its Jaguar Land Rover (JLR) luxury electric cars to India as it aims to make use of a new government policy allowing companies to import electric vehicles (EVs) at lower customs duty, Reuters reported.
As per the new policy unveiled in March, companies that set up manufacturing facilities for EVs will be allowed to import up to 8,000 EVs annually over five years at a lower customs duty of 15%. The minimum investment required for the manufacturing facilities is ₹4150 crore ($500 million).
Tata and JLR are discussing the possibility of applying for incentives under the new policy, Reuters reported, citing unidentified people aware of the development in the government.
This will make Tata the first Indian company to utilize the policy.
Tata will set up a JLR manufacturing plant in Tamil Nadu at a cost of $1 billion as part of the requirement, the report said.
Tata is one of the top suppliers of EVs in the country with four models—Punch, Nexon, Tiago, and Tigor.
The company had opposed the new EV policy allowing imports to protect the domestic EV industry. However, Tata’s British venture, JLR, is set to benefit from the incentive scheme.
As per the new policy, the total number of EVs allowed for import would be determined by the total duty foregone or investment made, whichever is lower, subject to a maximum of ₹6,484 crore ($777 million), which is equal to incentive under PLI scheme.
Meanwhile, car industry representatives on Thursday met government officials to discuss a framework for the policy.
Representatives from Hyundai, Vinfast, Volkswagen, BMW, Mercedes, Maruti Suzuki, Mahindra and Mahindra, Toyota, and Tesla were present, among others.
Elon Musk-led Tesla is among the EV companies that are planning to export vehicles to India and set up a manufacturing plant under the new policy.
Tesla is set to be one of the biggest beneficiaries of the scheme. The Austin-headquartered firm had been pushing for a lower import tariff for its vehicles during negotiations with the Indian government.
Musk, who is expected to meet Prime Minister Narendra Modi during a visit next week, will likely unveil his India investment plans.
The company is currently scouting locations for its plants in the country.
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