Steel-to-power JSW Group is planning to foray into electric car manufacturing. Electric vehicles enjoy incentives like low taxes from the government. The government also has set a goal of raising the number of such vehicles to up to 7 million units by 2020, from just around 20,000 now.
Nitin Gadkari, Minister of Road Transport & Highways in his U.S. visit, had offered to help Tesla set up plants in India and seek local partners, according to a statement from his ministry. The ministry says on its website that it could spend around $2 billion by 2020 to increase the penetration of electric vehicles, including by “promoting charging infrastructure”.
JSW has even set up a team of around eight officials working on the car project for the past few months, and Jindal has interviewed a handful of Indian-born automobile executives to head the division, including one official with Nissan (7201.T) in Japan, said a source.
Mahindra and Mahindra is the only Indian firm that makes electric cars, but sales have not been as expected. The experts are of the opinion that it will be difficult for any new company to crack the Indian electric car market. However any of such attempts must be appreciated and supported by the government.