Volkswagen & Tesla make common cause for market entry in India

Volkswagen has teamed up with Tesla to reduce import duties in India, at least can this be made up of recent articles from Reuters. A classic partnership in this sense does not exist between the two manufacturers. However, both the VW Group, as well as Tesla strive to reduce import duties on cars in India. On the one hand, the Indian, local production is promoted, on the other hand, it will make foreign manufacturers difficult to grasp.

Already a few months ago, Tesla increased his efforts to bring their own vehicles to India. Because the fifth largest automotive market in the world is not exactly uninteresting. In 2021, Tesla acquired business licenses, as a company register, set executives on site. But the active sale and especially the import of electric cars are difficult. So that this would have to be expected to be reduced accordingly.

As Reuters reported, citing two government officials, could soon give a “sharp” lowering of import duties. To classify: for streamers with a value of less than 40.000 Dollars (costs of the vehicle, insurance and freight) should decline from currently 60 to 40 percent. For e-cars, the more expensive than 40.000 dollars including the costs mentioned are, the rate of currently 100 percent should fall to 60 percent.

Such a reduction would mean in particular for Tesla that Model 3 is sold including the insurance and freight costs on arrival in India “only” with 60 percent surcharge. Currently it is so that the purchase of a model 3 is associated with a doubling of the purchase price. Since the Stromber obviously more than 40.000 Dollar is worth when imported to India. Some government officials fear that the reduction in import tariff fees could take the indigenous automakers and suppliers of car parts. The business must benefit from local companies in India, the Indian government.

Meanwhile, the Volkswagen Group has also brought into the discussion and urges a reduction in import duties in India. The company proposes a reduction in import duties to up to 25% and declares that the reduction would not be a major threat to the local companies. Especially since imported vehicles are still more expensive than domestic alternatives.

“The market for electric vehicles must be big enough so that investments can be made, and we should not build any obstacles,” said Gurprattap Boparai, Managing Director of Skoda Car Volkswagen India, opposite Reuters. Volkswagen AG has several electric vehicles for your various brands. However, the company strives that only his brands Volkswagen and Skoda come to the Indian market. This will only be possible when the import duties do something. You may be curious if the joint prerequisite of this and Musk will bear fruit.

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