MG Motor India’s CEO Emeritus Rajeev Chaba highlighted the current dearth of competition in India’s electric vehicle (EV) sector, noting that the entry of international giants like Tesla will reshape the landscape. “Competition remains limited currently, with constrained options for consumers,” Chaba remarked during an interview with CNBC’s Sri Jegarajah in Gurugram, India.
While EVs constitute only around 5% of India’s automotive market, Chaba expressed skepticism regarding the government’s ambitious target of achieving 30% EV sales by 2030, though he suggested that 20% to 30% might be attainable with enhanced policies attracting foreign automakers.
Chaba emphasized the potential impact of Tesla’s presence in India, asserting that it would catalyze the development of the EV ecosystem and attract consumers. The recent reduction in import tariffs on certain EVs, announced by the government, particularly benefits Tesla, which has long sought to enter the Indian market and advocated for lower import duties.
Under the new policy, automakers investing a minimum of $500 million and establishing manufacturing facilities in India within three years will qualify for lower import tariffs, enabling the import of up to 8,000 EVs priced at $35,000 or more annually at reduced tax rates.
This move signals a positive development for Tesla’s aspirations in India, which had faced hurdles due to high import taxes. However, domestic automakers like Tata Motors, Mahindra and Mahindra, and Maruti Suzuki have reportedly expressed concerns about the implications of these changes.