I get that Chinese EV makers have received a lot of subsidies from the Govt there ๐๐ But, I donโt 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, Govtโs PLI incentives would be the biggest source of earnings for the companyโs EV unit. Thatโs not a joke. This is a serious amount of money that we are talking about ๐ 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. Thatโs ~$6bn! .. Plus, the 5% GST rate versus ~43% tax (28% GST + Cess) on all other vehicles ๐๐ Thatโs effectively a 37% tax cut on the purchaserโs end on the car that the Govt is giving EV makers versus all other cars - petrol, diesel, CNG, hybrids etc. And itโs 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 ๐๐ So why is the narrative that China helps its automakers with big subsidies and the Indian Govt doesnโt? Based on the aforementioned numbers and facts which are all publicly verifiable, I donโt think that narrative holds merit. What do you think?
Download the medial app to read full posts, comements and news.