By Reuters | Updated: 25 September 2023

BERLIN, Sept 25 (Reuters) – German Transport Minister Volker Wissing has rejected possible punitive tariffs as a result of the European Commission’s investigation into Chinese electric vehicle (EV) subsidies.

“In principle, I don’t think much of erecting market barriers,” Wissing told the Monday edition of the Augsburger Allgemeine newspaper.

Such isolationist politics could spark a chain reaction that would massively damage the German economy, said Wissing.

“Today cars are sealed off, tomorrow chemical products, and each individual step in itself makes the world poorer,” said Wissing, from the business-friendly Free Democrats (FDP).

“We have to make sure that we produce our electric vehicles competitively – for Germany and for the world markets,” he added.

European Commission President Ursula von der Leyen this month announced a probe into whether to impose punitive tariffs to protect EU automakers against China’s EV imports, which the commissions says are benefiting from excessive state subsidies.

China blasted the probe as protectionist and warned that it would damage economic relations, a concern shared by Germany’s car industry.

German Economy Minister Robert Habeck, by contrast, has welcomed the step, saying action must be taken if massive breaches of competition rules are found by the EU probe.

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By Reuters | Updated: 20 September 2023

India’s Ola Electric plans to file regulatory papers for its up to $700 million (roughly Rs. 5,815 crore) IPO before the end of October as the e-scooter maker fast-tracks its listing move, three people with direct knowledge said. Backed by investors including Singapore’s Temasek and Japan’s SoftBank, Ola Electric was valued at $5.4 billion (roughly Rs. 44,852 crore) in a recent fundraising.

In an email to its bankers and lawyers on Sunday, an Ola Electric executive asked external advisers on the IPO – including the investment banking units of India’s Kotak and ICICI, as well as foreign banks including Bank of America and Goldman Sachs – to give “utmost priority” to meet a five-week deadline, said the sources.

Ola Electric and Kotak did not respond to a request for comment while the other three banks declined to comment. The sources did not wish to be identified as the communication is internal.

India’s Ola Electric plans to file regulatory papers for its up to $700 million (roughly Rs. 5,815 crore) IPO before the end of October as the e-scooter maker fast-tracks its listing move, three people with direct knowledge said. Backed by investors including Singapore’s Temasek and Japan’s SoftBank, Ola Electric was valued at $5.4 billion (roughly Rs. 44,852 crore) in a recent fundraising.

In an email to its bankers and lawyers on Sunday, an Ola Electric executive asked external advisers on the IPO – including the investment banking units of India’s Kotak and ICICI, as well as foreign banks including Bank of America and Goldman Sachs – to give “utmost priority” to meet a five-week deadline, said the sources.

Ola Electric and Kotak did not respond to a request for comment while the other three banks declined to comment. The sources did not wish to be identified as the communication is internal.

Ola Electric is targeting IPO roadshows for early January or February, said one of the sources.

The company, India’s market leader in e-scooters with a 30 percent share, was founded by Bhavish Aggarwal and has seen its popularity surge as the country promotes the use of electric cars and scooters.

He has said his affordable e-scooters, which start retailing at $1,080 (roughly Rs. 89,700), are for the masses, and in an interview this year said “Tesla is for the West, Ola is for the rest.”

Ola Electric, though, still makes losses. It recorded an operating loss of $136 million (roughly Rs. 1,129 crore) on revenue of $335 million (roughly Rs. 2,782 crore) in the fiscal year ending March 2023, Reuters has reported.

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By Press Trust of India | Updated: 16 September 2023

German luxury car maker Mercedes-Benz India on Friday announced the extension of its electric vehicle charging network to the customers of other brands as it looks to accelerate faster adoption of electric vehicles in the country. The carmaker also launched the top-end EQE 500 4MATIC electric SUV at an introductory price of Rs 1.39 crore (all India ex-showroom) and a new ‘Customer Experience Centre’ at Chakan, in Pune.

Mercedes-Benz is also supporting the EV (Electric Vehicle) transition in India by democratising the ultra-fast charging network. All EV customers in India across brands, can now enjoy the luxurious Mercedes-Benz experience while using the company’s charging network, Santosh Iyer, Managing Director and Chief Executive Officer of Mercedes-Benz India (MBI), said.

The company said it has the largest charging network within the luxury car space with 140 chargers at different points. Of these, 40 chargers are in the 180 kilowatts and the 60 kilowatt area, which means fast chargers, said.

“…we will be extending this entire charging facility, not only for Mercedes customers but for all brands, luxury, and mass, so that they can come in and charge their cars at a faster pace at our fast charging network,” Iyer said.

The move will help in further accelerating the adoption of electric vehicles in India, he added.

Moreover, MBI has also developed an app along with Bengaluru-based Mercedes-Benz Research and Development India (MBRDI), which enables EV customers to get access to an additional 150 superchargers, Iyer said.

The app can be downloaded by any customer — of Mercedes or non-Mercedes — and it gives access to a fast charging network across India and can help in day-to-day commute or their interested commute, Iyer added.

On the launch, he said, “We are strengthening our BEV portfolio by launching the EQE 500 4MATIC SUV. This is an important addition to our BEV portfolio offering segment-leading luxury appointments, technology and connectivity, among others.” The EQE 500 4MATIC SUV comes with a segment-best, 10-year battery warranty, and a service interval of once in two years, the company said.

The one-of-its-kind Customer Experience Centre in the country will serve a diverse purpose, spanning from curated private consultation, and personalised deliveries of cars to hosting top-end customers’ own corporate events, he said.

By Reuters | Updated: 16 September 2023

Volkswagen-owned Audi’s India unit said on Friday that any potential cut down on electric vehicle (EV) import taxes would help the German carmaker experiment better with models and pricing in the world’s third-largest car market. “If we get a window of three to five years where the government is able to reduce the duties, it will let us experiment with what models make sense for India and help in terms of pricing points,” Audi India head Balbir Singh Dhillon told Reuters on the sidelines of a showroom launch in Bengaluru.

Reuters reported last month that the Indian government is working on a new EV policy that would slash import taxes for automakers that commit to some local manufacturing.

Dhillon said that the India arm is in talks with the German parent to initiate assembling “some” of its electric cars locally, but declined to provide details on timeline or potential models.

Audi is trying to catch up with its peers, BMW and Mercedes, in the transition to electric. Currently, the company’s India arm only makes internal combustion engines locally, which are used in its petrol cars.

India’s commerce minister, Piyush Goyal, said earlier in the week that the government will consult with the industry and come out with a new policy to attract greater EV investments.

The efforts come as India pushes towards greener mobility, with the government hoping to increase electric car sales to 30 percent by 2030 from current nascent levels of 2 percent. Of this, luxury EVs are a fraction.

After four models launched last month, six out of 16 models in Audi India’s offerings are electric cars, which are entirely imported and sold in the country priced between $136,000 (roughly Rs. 1.12 crore) and $234,000 (roughly Rs. 1.94 crore).

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By Reuters | Updated: 14 September 2023

India will come up with a new policy to attract electric vehicle (EV) manufacturers and encourage greater investment in the sector, the commerce minister said on Wednesday. Piyush Goyal’s comments come as US EV maker Tesla continues talks with Narendra Modi’s administration on the possibility of building a factory in India.

Reuters last month reported that India was working on an EV policy that would cut import taxes for automakers that committed to some local manufacturing, citing sources with direct knowledge of the matter.

Asked about the government’s plans, Goyal said consultation on the new policy will be held with the industry.

“We will come out with a policy,” he said, adding that the government wants to attract more investment and increase domestic EV production as soon as possible.

“As we get large-scale production, we will start enjoying the fruits of economies of scale of new technologies,” Goyal said without disclosing the nature of any possible incentives.

Tesla’s senior executives with an interest in building a factory in India met Goyal in August.

Tesla plans to produce a low-cost EV priced at $24,000 (nearly Rs. 20 lakh) – about 25 percent cheaper than its existing entry-level model – for both the Indian market and export.

Goyal said on Tuesday that Tesla aims to source components worth between $1.7 billion (roughly Rs. 1,410 crore) and $1.9 billion (roughly Rs. 1,575 crore) from India this year, having bought $1 billion (roughly Rs. 8,294 crore) of components last year.

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By Reuters | Updated: 25 August 2023

India is working on a new electric vehicle policy that would slash import taxes for automakers that commit to some local manufacturing, following a proposal by Tesla which is considering entering the domestic market, people with direct knowledge said.

The policy being considered could allow automakers to import fully-built EVs into India at a reduced tax as low as 15 percent, compared to the current 100 percent that applies to cars which cost above $40,000 (nearly Rs. 33 lakh) and 70 percent for the rest, said two of the sources, including a senior Indian government official.

Tesla’s best-selling Model Y, for example, starts at $47,740 (nearly Rs. 39 lakh) in the US before tax credits.

“There is an understanding with Tesla’s proposal and government is showing interest,” said the official, who is familiar with the issue.

If such a policy is adopted, it could amount to a drastic reduction in the cost of imported EVs that local carmakers have been keen to avoid. It could also open the door for global automakers, beyond Tesla, to tap the world’s third-largest car market where sales of EVs are less than 2 percent of total car sales, but growing rapidly.

The lower import taxes could help Tesla sell its full range of models in India, and not just the new car it wants to make locally, said a third source.

Other countries have taken similar measures to spur EV manufacturing commitments. Indonesia, for example, has offered to reduce import duties from 50 percent to zero for EV makers planning investments, a move seen aimed at attracting Chinese players and Tesla.

India’s commerce and finance ministries, and Tesla, did not respond to requests for comment. The policy is still in the initial stages of deliberation and the final tax rate could change, two of the sources said.

Tesla first tried to enter India in 2021 by pushing officials to lower the 100 percent import tax for EVs. Last year, the talks between Tesla and the Indian government collapsed when officials conveyed the company would have to first commit to local manufacturing.

More recently, Tesla has told Indian officials it is keen to set up a local factory and make a new EV priced in the range of $24,000 (nearly Rs. 20 lakh), around 25 percent cheaper than its current entry model, for both the Indian market and export.

“Lot of deliberations”

Outside the United States, Tesla currently has a plant in Shanghai — its largest factory worldwide — and one outside Berlin. It is building a new plant in Mexico that will focus on a new mass-market EV platform Musk has said will slash costs for consumers.

For India plans, Tesla’s senior public policy and business development executive Rohan Patel has in recent weeks met top officials privately. Prime Minister Narendra Modi, who held talks with CEO Elon Musk in June, has been tracking progress closely, Reuters has reported.

One of the sources said Tesla told Indian officials a potential India factory could operate at full capacity by 2030.

Indian officials have conveyed there will be no special incentives for Tesla’s market entry, and the proposal for a low import tax, conditional on a manufacturing commitment, was touted by Tesla to keep both sides happy, the sources said.

Still, New Delhi is going to move slowly in considering the policy proposal as any lowering of taxes on imported EVs could disrupt the market and upset local players like Tata Motors and Mahindra and Mahindra that are investing to build electric cars at home.

“This is going to go through a lot of deliberations even though government is keen on getting Tesla. That’s because of the impact on domestic players,” the Indian official said.

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