Mahindra Electric contemplates entry into China

As the electric car market is witnessing growth in China, Mahindra Electric has been contemplating entering the Chinese electric car market. It is looking forward to striking a Joint Venture with a firm based in China.

The Chinese population has been taking a strong preference for electric, fuel-celled and hybrid vehicles, which has caught the attention of automakers from around the world.

So, Mahindra wants to enter the electric car market in China. This report is even confirmed by Arvind Mathew, CEO, Mahindra Electric. The electric carmaker subsidiary of the Mahindra & Mahindra has a good presence in India and the UK.

To proliferate electric cars to over 5 million by 2020 is a Chinese Government initiative. So, manufacturers of electric cars in China will also be eligible to get subsidies and other benefits. The Government has also gone a step ahead to build better charging infrastructure, along with grants for research and development of electric cars.

In order to make itself eligible for subsidies, grants and benefits, Mahindra must make the electric cars locally in China. Even in order to manufacture in the Chinese market, Mahindra must enter a Joint Venture with a Chinese-based firm.

The Government does not also encourage imports, as it levies a 25% duty on imported vehicles. So, besides contemplating its entry into the Chinese market, Mahindra must also enter a JV to even manufacture electric vehicles in China as well as avail Government subsidies.

credits: http://www.vicky.in/car/