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 Reuters | Updated: 18 September 2023

Indian electric scooter maker Ather Energy will accelerate new model launches at home and test export markets, its chief executive told Reuters, raising new money to boost growth after the government lowered subsidies for the vehicles.

India’s electric scooter market is small but growing, with e-models accounting for 5 percent of total scooter and motorcycle sales in the last fiscal year against a government target of 70 percent by 2030.

But in a surprise move in May, the government, without explanation, slashed cash incentives on the vehicles to a maximum of 15 percent of the price before taxes from 40 percent earlier. The next month total e-scooter sales more than halved.

Ather’s sales also dropped but are rapidly picking up. CEO Tarun Mehta said in an interview that the company is now working on two new models, one of which will be launched six months earlier than originally planned.

“The transition to electric vehicles could have been faster if not for the (subsidy) change but even then, there will be no major impact in the mid to long term,” he said.

“This shift means we are having to fast track product launches and invest more in product development,” he added.

As part of a long-term growth strategy, Ather is aiming for more than 50 percent of its sales to come from global markets by the end of the century, Mehta said.

Ather, India’s third-largest e-scooter maker after Softbank Group-backed Ola Electric and local TVS Motor, plans to add a scooter designed for use by different members of a family to its current two-model lineup aimed at individual riders, Mehta said.

Valued at around $750 million (nearly Rs. 6,250 crore), Ather will raise more money before the end of 2023 to back its growth plans, he said, without giving more details.

A source with direct knowledge of Ather’s plans said the company is looking to raise an amount similar to the $108 million (nearly Rs. 900 crore) garnered from existing shareholders Hero MotoCorp and Singapore’s sovereign wealth fund GIC in a recent rights issue.

Ather will also pilot sales in one Asian export market in a couple of months.

“India will not only be the largest market in the world for electric two-wheelers but also the largest exporter,” he said.

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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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