TaMo, short for Tata Motors, is in a head-to-head battle to conquer the Indian roads. With their EV cars and one of the richest billionaires, Elon Musk’s company, Tesla
A new policy that was introduced in India invites companies like Tesla to start manufacturing their cars in India. This sounds like good news for the country but will create some competition for Tata in the luxury segment.
The entry of Tesla will pose threats to some companies, like Mahindra and Tata Motors, at the upper end of the SUV market.
The new policy that has been introduced allows 8000 units of electric vehicles above 35,000 USD, or approximately 29,00,000 INR, to be imported annually at 15% import duty in comparison to the original 70%–100%. To benefit from this scheme, companies will have to invest 500 million USD to set up a local manufacturing unit.
EVs below the price range of 35,000 USD will continue to attract import duty in order to protect Indian companies operating in that price range.
Tesla, being a leader in the global EV market, is expected to introduce their cars between Rs. 51 lakhs and 1.2 crores, which will put them into the luxury segment.
Tata Motors, which is currently dominating India’s EV market with its cars like the Tiago, Nexon, Tigor, and Punch, will face competition not only from foreign companies but also Indian companies like Mahindra & Mahindra and MG Motors, which have recently collaborated with JSW.
Both Mahindra & Mahindra and JSW MG Motors have big plans for the future, which look promising. They will be introducing their line of EVs as well.
Tata Motors currently controls 70% of the market share, and they’re soon planning to introduce the Harrier EV and the Curvv EV as well. Right now, EVs only serve 15% of its total sales; this number is expected to rise to 25% by 2027.
Tata Motors has lowered the price of its two EV models, the Nexon and Tiago, to make them more affordable to consumers. An analyst says Indian car companies are doing well because they know what the Indian audience wants and have the skills to adapt easily and quickly.
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