Tata Motors says govt support needed for shift to EVs
India needs to make clear which clean-car technology it intends to support to meet its zero-emission goals, a top official at the country's most valuable carmaker, Tata Motors, said.
India needs to make clear which clean-car technology it intends to support to meet its zero-emission goals, a top official at the country's most valuable carmaker, Tata Motors, said. "The government, as part of its commitment towards zero-emission economy, needs to be very clear in terms of where they are going to put their money," CFO P.B. Balaji said, explaining that automakers can't invest in all technologies.
The comments came in response to a question seeking Tata Motors' position if the government were to lower import taxes on hybrid cars.
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India taxes electric vehicles at just 5%, while the levy on hybrids is as high as 43%, just below the 48% imposed on petrol cars.
While India's trade department has backed calls by some Japanese carmakers to reduce taxes on hybrids, Tata Motors has urged government officials to not shift their stance.
The government has "correctly" chosen what Balaji calls a "destination" technology, which will need significant investment from automakers as they move from gasoline cars to EVs eventually.
To make the investment viable, there needs to be government support, he added.
"We firmly believe, we have been explicit about it for valid reasons, that is where support is needed," he said. There should not be a subsidy for a "transient" technology, referring to hybrids, he said.
Electric cars make up less than 2% of total car sales in India but the government wants to grow this to 30% by 2030, and automakers including Mahindra & Mahindra, opens new tab and Maruti Suzuki, opens new tab plan to launch EVs in 2025.
Earlier in the day, Tata Motors smashed its third-quarter profit expectations with a more-than-two-fold increase to 70.25 billion rupees ($847.7 million), on strong sales in its British luxury car unit, Jaguar Land Rover (JLR).
12:40 PM IST