Enough safeguards in place for domestic industry in EV space: R C Bhargava

R C Bhargava tells that we support any scheme of the government that encourages new investment and new technology to come into the country, and that is what we hope will happen

The government has ensured adequate protection for the domestic automobile industry in the new electric vehicle policy that provides duty concessions to global players setting up manufacturing units in India, says Maruti Suzuki India’s Chairman R C Bhargava in a telephonic conversation with Surajeet Das Gupta. Edited excerpts:

Do you have any concerns about the government allowing carmakers like Tesla to import their cars having a CIF (cost, insurance and freight) value of $35,000 and above at a lower 15 per cent duty, provided they invest $500 million to set up a manufacturing plant within three years? 
 

I am very clear — we support any scheme of the government that encourages new investment and new technology to come into the country, and that is what we hope will happen. The government has ensured and put in enough safeguards to protect the domestic industry in the electric vehicle space, which is in its infancy in the country and requires a lot of protection. So negative impact or damage, if any, will be minimal.

 

Are these safeguards enough?
 

Of course! By allowing the import of cars worth over $35,000 (CIF value), which is a very small market segment in the ICE (internal combustion engine) space, and even more so in the EV space, the government has given adequate protection. Also, it has restricted the number of cars that can be imported to a minimum, which again won’t impact us. 

                           
 

Do you see global companies coming to India under this scheme?
 

I am sure they -- like the Europeans and the Vietnamese carmakers and Tesla – will, if they see a market.

 

So are saying that EV makers in India should be concerned about this new policy?
 

They have to grapple with other challenges, such as whether the country has enough charging stations for customers to feel comfortable about the range, what is the sale value of a second-hand electric car, what the gap in price between ICE and a similar EV model, and will that get neutralised by lower operating costs. These are more important.