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Xiaomi to Launch First EV as India Cuts Import Taxes, Boosting Competition

Xiaomi Set to Deliver First EV as India Lowers Import Taxes Chinese tech giant Xiaomi is poised to enter the electric vehicle (EV) market with the launch of its first car, the Speed Ultra 7 (SU7), this month. The company aims to become a top-five global car maker, offering advanced

Knox Harrington profile image
by Knox Harrington
Xiaomi to Launch First EV as India Cuts Import Taxes, Boosting Competition

Xiaomi Set to Deliver First EV as India Lowers Import Taxes

Chinese tech giant Xiaomi is poised to enter the electric vehicle (EV) market with the launch of its first car, the Speed Ultra 7 (SU7), this month. The company aims to become a top-five global car maker, offering advanced features like "super electric motor" technology and a shared operating system. Xiaomi's entry comes amidst a fierce price war in China's EV market.

In a significant policy shift, India has announced lower import taxes on EVs for companies investing at least $500 million and establishing local manufacturing within three years. This move could support Tesla's plans to enter the South Asian market. Companies meeting the investment and manufacturing criteria will be allowed to import a limited number of EVs annually at a reduced 15% import duty on cars costing $35,000 and above. The policy aims to provide access to the latest technology, stimulate the local economy, and foster competition among EV players.

Meanwhile, Nissan Motor is exploring a potential collaboration with Honda Motor in the EV sector, which could involve joint procurement and development of components such as a common EV powertrain or e-axle. Discussions within Nissan are still in the early stages, and Honda's position on the partnership remains unclear.

The Indian government's decision to reduce import tariffs on EVs for carmakers planning to produce locally is expected to attract global companies like Tesla. However, this may also increase competition for existing players such as Tata Motors and Mahindra Group. The government believes this incentive will help position India as a manufacturing hub for the latest e-vehicle technology, benefiting both consumers and the economy.

As the EV industry continues to evolve, companies are exploring new partnerships and strategies to stay competitive. The entry of new players like Xiaomi and the potential collaboration between Nissan and Honda highlight the dynamic nature of the market. With supportive government policies and increasing consumer demand, the EV sector is poised for significant growth in the coming years.

Knox Harrington profile image
by Knox Harrington

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