Street View: India's EV policy unlikely to impact domestic players

Sona Blw Precision Forgings

18/03/2024 07:33

** India said on Friday it would lower import taxes on
certain electric vehicles produced by carmakers in exchange for
a commitment to invest at least $500 mln and begin domestic
manufacturing within three years
    
    NEW POLICY COULD UPSET LUXURY VEHICLE SALES 

    ** Emkay says EV policy, which aims to promote local
manufacturing and develop EV ecosystem, "reasonably" protects
Indian manufacturers largely operating below $35,000 price point
    ** Flags risk to a few upcoming models of Mahindra &
Mahindra  MAHM.NS , Tata Motors  TAMO.NS  at upper end of the
SUV market
    ** There could be potential impact on luxury vehicle sales
with increased entry of mid-to-premium EVs at competitive
pricing - Emkay    
    ** Nomura estimates Tesla's Model 3 Rear-Wheel Drive to
start above 5 mln rupees ($60,317.27) in India, with Model S
Plaid costing up to 10 mln rupees 
    ** Suppliers such as Sona BLW Precision Forgings  SONB.NS ,
Sansera Engineering  SASE.NS  Motherson Sumi Wiring India
 MSWI.NS  to benefit from Tesla's India entry - brokerage
    ** Nomura rates "buy" on MAHM, TAMO, SONB, SASE and MSWI
    ** SONB and MSWI up 2.3%, 0.2%, respectively, while SASE
down 0.6% 
    
($1 = 82.8950 Indian rupees)

 (Reporting by Rama Venkat)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))