Tata looks to import Jaguar Land Rover EVs under low-duty policy; may make JLR cars at TN plant
Tata Motors plans to import its Jaguar Land Rover (JLR) luxury electric cars under a new government policy that lowers import taxes for companies agreeing to manufacture locally, two government sources said.
Tesla is also expected to start bringing its cars to India and make an investment in the country, Reuters has reported, but Tata’s plan, if realised, would make it the first local carmaker to take advantage of the policy designed to increase use of electric vehicles (EVs).
A Tata spokesperson declined to comment on what it said was speculation.
The policy announced in March cuts import taxes to 15 per cent from as high as 100 per cent on some EV models if a carmaker invests at least $500 million and sets up a factory in India within three years.
Tata had originally pressed the government not to lower import duties to protect the domestic industry.
EYEING INCENTIVES
Now, Tata and JLR are discussing the possibility of applying for incentives under the EV policy, said a third source aware of the company’s plans, adding that deliberations are at an early stage.
“Tata wants to import JLR electric vehicles under this new policy,” said one of the two government sources, who declined to be named as the company’s plans are confidential.
Even as Tata is firming up plans to import JLR EVs from the UK, it is also considering manufacture of JLR cars at the planned $1 billion plant in Tamil Nadu. It remains unclear which JLR cars Tata will make there. The Centre met with car industry representatives on Thursday to begin finalising a framework for the EV policy, the o£cial said.
The meeting was attended by Hyundai Motor, Vinfast, Volkswagen, BMW, Mercedes, Maruti Suzuki, Mahindra and Mahindra, Toyota Motor and others. A Tesla representative was also present.
The o£cial said at least another couple of meetings would follow.
Tata dominates India’s small but growing EV market.
Electric models made up about 2 per cent of total car sales in 2023, with the government targeting 30 per cent by 2030, even as demand in key markets such as the US and China is slowing.