Indian automaker Mahindra & Mahindra urges the government to ensure a level playing field between domestic and foreign electric vehicle (EV) makers as Elon Musk’s Tesla plans to enter the country’s fledgling clean car market.
Mahindra Group Chairman Anand Mahindra said policymakers should protect local manufacturers as the EV shift gathers momentum in price-sensitive India. His comments follow reports that Tesla is set to begin operations in India after years of negotiations.
“I just want a level playing field,” Mahindra told local media, advocating against extra sops for overseas entrants. “I’m not asking for favors.”
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“There should be no sudden U-turns; there should be transparency on how policies are created,” Mahindra said regarding EV rules as Tesla moves closer to India production.
Mahindra, one of India’s leading EV producers, highlighted the risks of “discounted prices” from international manufacturers flooding the cost-competitive clean car market.
Minister for Road Transport Nitin Gadkari previously assured domestic car firms that the government “will protect them” as foreign competition heats up.
“We have allowed Tesla to operate, but Tesla should not operate in India by undercutting Indian companies,” Gadkari said at a public event. “Our Indian companies should get a level playing field.”
Rival Tata Motors, which dominates India’s fledgling EV sector, echoed calls for policies that “promote electric vehicle manufacturing by domestic OEMs.”
Background
Tesla has pushed to lower hefty import duties on electric cars as it plans to roll out products tailored for Indian roads. But local players argue such a move would undermine the government’s electrification focus by hampering domestic innovation and manufacturing.
India levies import duties ranging from 60% to 100% on high-end EVs – among the highest globally. The prohibitive tariffs aim to boost the Modi government’s “Make in India” drive and incentivize local production.
Mahindra and Tata dominate India’s EV market. Tesla’s entry may shake up the segment as it eyes the country’s vast untapped potential for electric mobility. With 17 million car sales forecast annually by 2025, India is poised to become one of the world’s fastest-growing auto markets.
What’s Next
As Tesla moves closer to selling locally built EVs in India within two or three years, domestic firms are lobbying hard for policies that prevent foreign OEMs from capturing market share through predatory pricing or unfair incentives.
Automakers have urged the government to uphold duties on imported EVs until overseas manufacturers like Tesla establish local manufacturing and scale.
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But lowering tariffs could boost India’s lagging EV shift. Ensuring equitable rules for domestic and global brands entering the market will be key to realizing the country’s electric mobility future.
