BENGALURU (Reuters) - India said on Friday it would lower import taxes on certain electric vehicles produced by carmakers that commit to invest at least $500 million and start domestic manufacturing within three years.
The policy will lead to increased competition for domestic automakers from companies like Tesla (NASDAQ:TSLA) and VinFast (NASDAQ:VFS) that are looking to tap the world's third-largest car market amid a global slowdown in EV growth.
Electric models made up about 2% of total car sales in India last year, and the government wants to increase that to 30% by 2030.
Below are EV plans announced by Indian automakers:
Tata Motors (NYSE:TTM)
Tata Motors, which commands more than 80% of India's electric car market, plans to have 10 electric models in its portfolio over the next 3-4 years, with EVs making up 25% of its total car sales by 2025, compared to 9.3% last year.
It currently sells four EV models, the latest of which is a new version of its Nexon electric SUV with a starting price of 1.5 million rupees ($18,000).
In 2021, Tata Motors raised $1 billion from TPG's Rise Climate Fund at a valuation of about $9.1 billion for its EV division.
Mahindra and Mahindra
Mahindra and Mahindra expects electric models to make up 20%-30% of its SUV sales by March 2027. Mahindra, which sells an electric version of its XUV 400 SUV, plans to push ahead with new electric SUV launches from 2025.
The carmaker has raised around $400 million for its EV unit from Singapore's Temasek and British International Investment.
Hyundai Motor (OTC:HYMTF) India
The Indian unit of South Korea's Hyundai Motor plans to introduce five EV models by 2032, adding to the two SUVs it already sells - the Kona and Ioniq 5. It will also grow the number of its charging stations to 439 by 2027.
Hyundai has said it plans to invest close to $4 billion in the Indian market over the next decade, including for the launch of new EVs, charging stations and a battery pack assembly unit.
Maruti Suzuki India
Maruti Suzuki India, the country's top automaker by sales, plans to have six EV models by 2030.
Japan's Suzuki Motor, which holds a majority stake in the company, has said the group's first battery EV will be rolled out from Maruti's plant in the state of Gujarat by the end of 2024.
JSW Group
Indian steel-to-power conglomerate JSW Group, a new entrant in the EV category, said it will set up electric vehicle and battery manufacturing projects worth 400 billion rupees ($4.82 billion) in the eastern state of Odisha.
The group is also in talks with German auto major Volkswagen (ETR:VOWG_p) about supplying technology and components for its EV project, local media reported.
($1 = 82.8638 Indian rupees)