After India’s New EV policy, Can Tata Motors , Maruti Suzuki Share price Crash?
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An intersting analysis from the authors of equity masters.
In March 2024, the Indian government approved the new EV policy, under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of US$ 500 m.
The companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower import duty. Duty of 15% would be levied on vehicles costing US$ 35,000 and above for five years.
Which means that India now has no restrictions on the import of electric vehicles from any country, including China, under a new EV policy.
However , in India Tata Motors is the market leader in EV cars - It has developed an ecosystem in India which is doing well at Present- Tata UniEVerse, is an ecosystem that will leverage group synergies, from companies such as Tata Power, Tata Chemicals, Tata Autocomp, Tata Consultancy Services (TCS), Tata Digital, Tata Elxsi and Tata Motors Finance.
And Maritu Suzuki with all proven capability in car industry since 4 decades has just started its work on EV.
Will they (both Tata Motors & Maruti Suzuki) be able to withstand the EV competition with foreign players like Tesla & many well established Chinese EV players .?
Read on the full story. you may ignore the promo’s in between.
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