Tata plans Jaguar Land Rover EV imports to India under new policy: Report

Tata Motors is planning to import its Jaguar Land Rover (JLR) luxury electric cars under the new government policy, which is also attracting Elon Musk-owned Tesla. Tata wants to import Jaguar Land Rover EVs under this new policy, a government source told Reuters on Thursday. 

Last month, the Narendra Modi-led government approved the new EV policy, under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of $500 million.

The companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 per cent on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government.

At present, cars imported as completely built units attract customs duty ranging from 70-100 per cent, depending on the engine size and cost, insurance and freight value less or above USD 40,000.

On Thursday, a government delegation met with car industry representatives to begin finalising a framework for the policy, a government official told Reuters.
 
The meeting was attended by Hyundai Motor Co, Vinfast, Volkswagen, BMW, Mercedes, Maruti Suzuki, Mahindra and Mahindra, Toyota Motor Co and others. A Tesla representative was also present.

If Tata decides to opt for the new EV policy, it would make it the first Indian carmaker to opt for the new policy designed to increase use of EVs.

As Tata finalizes their strategy to bring JLR EVs over from the United Kingdom, they are also preparing to produce JLR vehicles at a new facility in Tamil Nadu, with a budget of $1 billion.

Earlier it was reported Tesla CEO Elon Musk is poised to reveal a significant investment in India amounting to $2-$3 billion, with the primary focus on constructing a new factory. 

Musk is scheduled to meet PM Modi in the week of April 22 in New Delhi, and will separately make an announcement about his India plans, Reuters reported.  Tesla officials are in touch with top officials of DPIIT and other ministries to execute its plan. 

India's electric vehicle market is growing steadily, led by Tata Motors. In 2023, EVs made up 2% of total car sales. The Centre is aiming to have 30% of new cars to be electric by 2030, signaling a significant shift in the automotive industry.