The automobile industry in India is one of the largest and fastest-growing sectors, playing a crucial role in the country’s economy. India is the fourth-largest automobile market globally, with a strong presence in both passenger and commercial vehicles. The sector is driven by a growing middle class, increasing urbanization, and rising disposable incomes.
The Industry is witnessing a significant shift towards electric vehicles (EVs) due to government incentives, environmental concerns, and consumer demand for cleaner alternatives. India aims to become a global hub for EV manufacturing, supported by policies like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme.
New EV Policy
India is set to unveil regulations to encourage electric vehicle manufacturing the government is planning for a 15 percent import duty against over a 110 percent tariff at present and global car makers like Tesla and other international automobile manufacturers looking to enter or expand in the Indian market.
The proposed policy will allow companies to establish assembly operations within their existing factory spaces. However, they must invest Rs 4,150 crore (around $500 million) in new capital, excluding previous investments and land/building costs. Companies that meet these criteria will be eligible for a reduced import duty of 15 percent, which is much lower than the current 110 percent tariff.
The new EV policy is nearly ready for approval by the Heavy Industries Minister, H.D. Kumaraswamy, and is expected to be announced by March. Once approved, companies will have 120 days to apply.
The policy allows up to 8,000 premium electric vehicles (EVs) priced over $35,000 to be imported annually at reduced duties and the assembly lines could be allowed by the existing factories. Furthermore, the carmakers are mandated to generate Rs. 2,500 crores in revenue by year two, Rs 5,000 crore by the fourth year, and Rs 7,500 crore by the fifth year from the start of manufacturing.
Listed below are some of the domestic automobile manufacturers that might be affected by the new EV policy
Tata Motors Limited
Current Market Price (CMP) – Rs. 672.90 Market Capitalization – Rs. 2,47,707.22
Coming to the EV sales for January, Tata Motors Ltd sold 5,037 units compared to 5,790 units last year, resulting in a decline of sales by 13 percent.
Mahindra & Mahindra Limited
Current Market Price (CMP) – Rs. 2,667.80 Market Capitalization – Rs. 3,31,748.62
Coming to the EV sales for January, Mahindra & Mahindra Limited sold 686 units compared to 784 units last year, resulting in a decline of sales by 13 percent.
Hyundai Motor India Limited
Current Market Price (CMP) – Rs. 1,797.35 Market Capitalization – Rs. 1,46,042.07
Coming to the EV sales for January, Hyundai Motor India Limited sold 321 units compared to 170 units last year, resulting in an increase of sales by 89 percent.
Maruti Suzuki India Limited
Current Market Price (CMP) – Rs. 12,320.15 Market Capitalization – Rs. 3,87,348.69
Coming to Maruti Suzuki India Limited EV has launched e – Vitara, and many more are upcoming.
Written by Sridhar J
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