Shares of automobile giants Tata Motors, M&M, and Hyundai Motor India fell 6% on 21st February amid reports that the government may ease EV import rules, paving the way for foreign players and intensifying competition for Indian automakers.
The development is crucial as Tesla has intensified efforts to enter the Indian market.
The government is considering lowering import duties and easing EV import norms to support Tesla’s entry.
Further duty relief may attract global EV makers and strengthen India’s role in the worldwide supply chain.
The Basic Customs Duty (BCD) on fully built EVs above $40,000 has been reduced to 70%, but a 40% Agriculture Infrastructure and Development Cess (AIDC) has been added.
The 10% Social Welfare Surcharge (SWS) has been removed, making the effective import duty 110% for EVs above $40,000.
For EVs priced below $40,000, the import duty remains unchanged at 70%.
At 11:55 AM, Hyundai Motor India was down 2.44% at Rs 1807.95, Tata Motors was down 1.93% at Rs 676.50, and M&M was down 5.42% at Rs 2685.50 on NSE.
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