I get that Chinese EV makers have received a lot of subsidies from the Govt there šš But, I donāt get why people think that Indian Govt is not raining money on Indian players. .. In February, Tata Motors CFO P Balaji publicly stated that in FY25, Govtās PLI incentives would be the biggest source of earnings for the companyās EV unit. Thatās not a joke. This is a serious amount of money that we are talking about š And mind it, apart from this, the Govt is also raining >Rs 19k crore on cell manufacturing. And on varied EV components manufacturing. All combined, PLI benefits alone total up to >Rs 45k crore. Thatās ~$6bn! .. Plus, the 5% GST rate versus ~43% tax (28% GST + Cess) on all other vehicles šš Thatās effectively a 37% tax cut on the purchaserās end on the car that the Govt is giving EV makers versus all other cars - petrol, diesel, CNG, hybrids etc. And itās all on top of ~Rs 15k crore the Govt has invested in incentivising EVs via the two FAME schemes. .. We are talking about thousands of crores in incentives every year, in all forms aforementioned combined šš So why is the narrative that China helps its automakers with big subsidies and the Indian Govt doesnāt? Based on the aforementioned numbers and facts which are all publicly verifiable, I donāt think that narrative holds merit. What do you think?
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