India revealed that it would reduce import taxes on certain electric vehicles where brands commit to invest at least $500 million.
The government said this new policy will lead to increased competition for car manufacturers from companies like Tesla and Vietnamese car maker Vinfast.
Sales of total EV cars in India stood at 2% in the last year, and the government is planning to increase it to 30% by 2030.
Tata Motors commands more than 80% of India’s electric car market.
Tata Motors currently sells four EV models in the automobile market which is a new version of its Nexon electric SUV.
Tata Motors raised $1 billion from TPG’s Rise Climate Fund in 2021 at a valuation of about $9.1 billion for its EV division.
Mahindra & Mahindra expects its SUV electric model sales up to 20%- 30% of its SUV sales by March 2027.
Mahindra & Mahindra has raised around $400 million for its Electric car unit from Singapore’s Temasek and British International Investment.
EVs are the future of mobility globally and the future of electric vehicles in India is phenomenal.