BMW joins Tesla and calls for temporary import duty cuts in India on EVs

BMW i4
Credit: BMW

The President of BMW Group India is calling on the Indian government to reduce import duties on EVs temporarily. Vikram Pawah notes that these temporary cuts would allow automakers to generate adequate volumes to produce vehicles locally.

BMW is entering the EV space with the launch of three new vehicles in the next 180 days. The BMW iX will launch within thirty days, followed by the all-electric MINI and BMW i4 sedan.

However, there are questions on if adoption will happen in India.

As per Pawah, BMW will introduce 25 electrified vehicles by 2023, with nearly half ready to launch in India. However, customs tariffs are a significant barrier for buyers.

BMW joins fellow automakers Tesla and Volkswagen urging the government to cut the high import duties on EVs. For reference, the Indian government levies an import duty of 60% for EVs costing $40,000 or less, while for vehicles over $40,000, the levy is 100%.

India open to lowering import taxes on EV, but they want to see Tesla’s plans first

Both Tesla and BMW are willing to start local production, but they want this temporary import duty cut to get sales moving in the country before investing. Pawah noted that a quantity window of 10,000 or something like that would help create demand to justify the investment in local manufacturing.

Indian officials did not respond to BWM Group India’s request.

Source: The Economic Times

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About Scott Nordlund 1636 Articles
Originally from the West Coast, Scott is an avid writer & EV enthusiast now living in Ottawa. He holds a MA in Political Science and once played professional football in the German Football League. Email