RC Bhargava, Chairman at Maruti Suzuki India Limited, is not concerned about the entry of Tesla and VinFast. Both these carmakers are slated to be the latest potential entrants in our market. Tesla is the biggest EV maker on the planet. It has been knocking on the Indian doors for a long time now. Elon Musk has even met the Indian Prime Minister Narendra Modi to discuss the specifics of its operations. He was asking for a reduction in import duties. However, the Indian government asks the companies to invest at least $500 million in manufacturing facilities to accept a lower tax proposal. Finally, last week the government announced the reduction of taxes from 100% to 15%.
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RC Bhargava Not Worried About Tesla and VinFast
That has got the Tesla fans excited beyond measure. Also, this rule will be applicable to the Vietnamese auto giant, VinFast. It has been in the news for a while now as well. These carmakers will focus above the entry-level segment in our market. That is the reason why RC Bhargava is not that concerned about them creating a negative impact on their business. In an interview with CNBC-TV18, he said, “New EV policy is designed to bring in new technology to India. Because the policy is for high-cost cars and the upper end of the market, I do not expect any impact on domestic manufacturers. A negative impact or damage, if any, will be minimal.”
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At present, the cost of the Tesla Model 3 in the USA is around $39,000. India, prior to this EV policy, levied a tax of between 70% and 100% on cars which cost over $35,000. Hence, the final price rises exponentially. But with the new 15% import duty, the numbers will be much more attractive for the buyers. This will ensure that Tesla is able to price its products competitively. Perhaps, a price range of around Rs 40 lakh to Rs 45 lakh for the Model 3 would be ideal. It will rival the Hyundai IONIQ 5 in our market.
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Author’s Note
Having world-class carmakers and products in our market is a positive sign overall. The customers get to experience the premium vehicles, while the other carmakers in the country will ensure that they offer the best quality products at aggressive pricing. Hence, it is a great situation for the potential customers. We shall have to wait to see how well the Indian consumers embrace EVs from Tesla and VinFast in times to come.
