Hyundai pitches for import duty cut on CBUs
Haryana CM inaugurates South Korean auto major's headquarters in Gurugram; Since its entry in 1998, it invested over $4 bn in India
Any duty rate cut by the government on imported electric vehicles (EVs) would be very beneficial as it would help automakers generate much-needed volumes and reach some viable scale, South Korean auto major Hyundai said on Tuesday.
The automaker, which inaugurated its new corporate headquarters here, supported the demand of the American electric car major Tesla which has sought lowering of duties on imported EVs.
Hyundai noted that support from the government in terms of taxation and creation of country-wide charging infrastructure were the two most critical factors to grow EV segment in India.
"We have heard that Tesla is seeking some duty cut on imports of CBUs. So that would be very helpful for the OEMs to reach some economy of scale in this very price competitive segment," Hyundai Motor India MD and CEO SS Kim told reporters here.
Till the time companies are able to localise EV components and other infrastructure, EV imports could help generate some market in the country, he added.
"It will take OEMs time to localise EVs by 100 pc. We are developing made in India affordable mass market EV, but at the same time if the government allows some reduction in the duty on imported CBUs that would be very helpful for all of us to create some market demand and reach some scale," Kim noted.
At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60 per cent to 100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above $40,000.
Last week Tesla Chief Executive Officer Elon Musk had said that the company may set up a manufacturing unit in India if it first succeeds with imported vehicles in the country.
He, however, said at present import duties in India are "the highest in the world" and is hoping for "at least a temporary tariff relief for electric vehicles".
Interacting on Twitter with followers who asked him to launch Tesla cars in India Musk said, "We want to do so, but import duties are the highest in the world by far of any large country!"
