Luxury Carmakers Focusing on Bringing Electric Cars into India


Luxury carmakers are aiming to launch EVs, hybrid and plug-in hybrids here despite high tax burden, to boost India’s electric mobility dream

GST Council has slapped a high tax burden of 43% on the environment friendly hybrid and electric cars in India. The electric and hybrid cars now draw 15% cess over and above 28% of GST making these cars dearer for the customers. But, such high tax burden is not resisting the luxury automakers from planning to focus more on EV and hybrid models for the domestic market.

Volvo has already confirmed that it will launch its first all-electric car in the country in 2020 alongside the global market. Among the other luxury car brands Audi, BMW and Mercedes-Benz are also preparing to roll out cars with lesser emission compliant BS-VI powertrains along with hybrid, plug-in hybrid and all-electric cars in the Indian market.


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In that case, we are expected to see the launch of a range of environment friendly luxury cars here in near future. However, the exact timeframe for these launches are not confirmed yet. But upon arrival, these cars will boost the Indian government’s plan to introduce all-electric mobility here by 2032.

Interestingly, despite being one of the largest automobile markets in the world and having immense potential for electric mobility, India lacks on EV charging infrastructure that is certainly slowing the progress of EV market here. Currently the only operator in the segment in domestic market is the Mahindra with its models like e2o Plus, e-Verito. It is developing a more powerful 600V electric model as well that would be designed jointly by Mahindra, Pininfarina and SsangYong.

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With the luxury car manufacturers gearing up to roll out EVs, we can expect the charging infrastructure to be improved in near future. Tesla is also preparing to enter the market with its Model 3 soon. The car is expected to arrive here sometime later this year or early next year. The company is gearing up to set up a plant in the country for localised production. Nissan too has confirmed the launch of its Leaf EV in the Indian market.

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