Germany To Oppose India’s EV Import Cuts

New Delhi, Dec 7 (KNN) The German government is likely to reach out to the Indian government and express its opinion on the proposed cuts in the import duty on electronic vehicle (EV) to attract investments.

Top sources told TOI that the German government has started work on creating a communication that it intends to submit to its Indian counterparts, especially the Department for Promotion of Industry and Internal Trade (DPIIT), which is spearheading the efforts to get Tesla to invest in India.

“We are preparing our views on the matter, and are in touch with local officials of the German car companies in India, while also taking up the issue with the German Association of the Automotive Industry (VDA),” sources told TOI.

The German government is of the view that the much-subsidised import duty tariff regime for electrics made by Tesla and other carmakers, will impact brands such as Mercedes-Benz, Volkswagen group and BMW as they would stand to lose in a “one-sided effort to promote just one brand”.

As reported by TOI, the government has said the scheme will not be focused on one or two players and will be put in place for the entire auto sector and will follow consultations with domestic and international players.

Yet, German authorities are of the view that its companies may be “at a disadvantage” under the new tariff regime, that may offer lower import duty for companies, which are willing to make new investments in India. “Our companies were some of the early investors in India, bringing in massive funds, technology, and jobs here. It would be unfair to leave them out of any subsidised regime just because they will not make fresh investments like a new player such as Tesla,” a source told TOI.

“We need a level-playing field and one that recognises those companies, which have already invested here in green technologies,” the source said.

(KNN Bureau)