Rolls Royce Spectre Just Became 45 lakh Cheaper, Thanks To MH Govt's Wild Move!
The Maharashtra Government has announced a major policy reversal. The state had earlier proposed to impose an additional six per cent tax on electric vehicles priced above $35,000 or roughly 30 lakh rupees ($1= Rs 85.57), calling them 'luxury EVs'. The same seems to have been scrapped now. This has brought about major reversals in the costs of most luxury electric vehicles. This means that a massive 45 lakh rupees has been shaved off the last (on-road) price of Rolls Royce Spectre in Maharashtra. Let's look at the specifics...
The Spectre is the first electric vehicle (EV) from Rolls Royce, and has an ex-showroom price of 7.5 Crores. The on-road price in Mumbai, without the additional 6% tax will amount to 7.8 Crores. The additional tax would mean a sum of 45 lakh rupees. It could have made the on-road price atleast 8.2 Crores. With the government having shot down the proposal to impose this, the prices have come back to 7.8 Cr.
When it comes to more affordable (and popular) models like the BMW iX1 electric SUV, the reversal means breathing life into an otherwise dead model. We take this example for a reason. BMW has given the iX1 brilliant pricing in India- 49 lakh (introductory, ex-showroom), lower than the petrol and diesel-powered X1! The proposed tax structure would have added 2.9 lakh rupees to the iX1's price, taking off its upper hand. The policy reversal has thus saved the model from sinking.
The decision to scrap the 6% proposal comes as part of Maharshtra's push for increased EV adoption. Electric car sales in Maharashtra continue to be in early stages, despite the Indian government's aggressive push for a complete transition.
Policy Reversal Aims to Support EV Growth
At a recent assembly meeting, Chief Minister Devendra Fadnavis made it clear that the tax increase on electric vehicles was unnecessary. He explained that raising the duties would have discouraged buyers and hurt the growing electric vehicle market.
He further emphasized that the state did not want to penalize luxury electric vehicles without a good reason. "We are disincentivizing EVs in the luxury segment without any reason... we will not go ahead with this,” - he said.
India is the world's third-largest car market. Electric vehicle sales here, however, has been rather slow despite the government's active push for adoption. Currently, the EV market share is just around 2%. The centre wants to increase this to at least 30% by 2030. High vehicle costs and limited charging infrastructure pose serious hurdles to India's ambitious EV dreams. Imposing additional taxes such as this will not help in lifting the price barriers.
Maharashtra is one of the most industrialized states in India. It even has a dedicated EV policy offering incentives to companies setting up manufacturing units there. It is home to Tata Motors and Mahindra- both of which are now strong with their respective electric vehicle portfolios. Some of their all-electric vehicles have prices around 30 lakh, and could be taxed, had the new slab been implemented. The rethinking will thus benefit these brands as well.
Furthermore, the state is an important market as well. Reports state that Maharashtra accounts for up to 10% of India’s total car and EV sales. Not to forget is the fact that Mumbai is the country's financial capital!
Tesla And The Rollback
The rollback comes as Tesla gears up to enter the Indian market. The American EV giant will compete with domestic manufacturers like Tata and Mahindra, both of which have established a strong foothold in the segment. With Maharashtra aiming to position itself as India’s EV manufacturing hub, the tax reversal is expected to make the state more attractive to investors- presumably even Tesla!