MUMBAI: Formula E has categorically ruled out the prospect of India hosting a race of the electric car championships due to the same tax troubles that forced Formula 1 to shut shop in the country, Press Trust of India reports. The declaration comes from Formula E founder and CEO, Alejandro Agag despite India being represented strongly by Mahindra Racing since the 2014-15 season.
“Our main worry for India is the tax. We have been doing a lot of research on the race in India. We have seen that Formula 1 faced so many tax issues in India. It is very risky to race in India because of the tax authorities,” Agag was quoted as saying to PTI.
“They (tax authorities) are very aggressive at the moment. They want to tax everything. So you don’t know where you stand. I think that is the reason Formula 1 did not continue in India. We would like to have complete tax safety and then look at going to India.”
Formula E will be entering its fifth season in December and boasts of presence of auto giants like Audi, Jaguar, Nissan and BMW besides Mahindra. Before the championship began four seasons ago, Agag expressed confidence in staging a race in India and even explored potential venues for the street race.
“We did explore venues. We would really love to race in India and we have three possibilities – Bangalore, Delhi and Mumbai. We have seen areas that will be ideal for the street race. We have a great Indian partner in Mahindra and we have a broadcaster (in Sony Pictures Networks). The only thing we need is an assurance from the tax people,” he added.
The series has managed to attract major manufacturers but the performance of the cars have left a lot to be desired. “I would say we are still in the early stages in the evolution of technology. The mission of Formula E is to improve on technology but you can’t go faster with each season.
“The performance compared to the conventional cars is not at the same level but it is catching up. In five or 10 years, the performance will be very similar. For the street races, I feel the performance is anyway good,” said Agag.
The CEO also claimed the series is now “cash positive” and it is re-investing the money into brand building.
“It is completely sustainable at the moment. When we started, there were challenges but now I don’t see any sustainability issues in the long-run, at least for the championship.
“The teams keep cards close to their chest. They don’t tell me how they are doing but I see all of them being fully committed to the series.” Agag signed off.
