Hyderabad ePrix - a Boost for Motorsport in India

The tentative status of MotoGP’s race isn’t due to Customs or tax factors listed above, but down to circuit readiness and subsequent FIM homologation - a responsibility that lies with the local promoters.

10 years after the last Indian Grand Prix, international Motorsport finally returned to India with the Hyderabad ePrix (11th February) - the fourth round of the 2022-23 Formula E season.

I attended the last Indian Grand Prix in NOIDA - and was one of the many who experienced the highs and lows of Formula 1’s circus in India. After a successful debut in 2011 that saw a sell-out crowd and an international award for the Buddh International Circuit (‘2011 Motorsport Facility of the Year award), the interest and attendance for the Indian Grand Prix faded away as the years passed.

And it wasn’t the fans alone who lost interest - Formula 1’s interest faded away, too. But the sport’s disinterest had nothing to do with a circuit design that was considered as ‘too wide in places where it should be narrow, and too narrow where it should be wide’. It was down to the difficulties it faced to race in India - customs and taxes, largely speaking.

Learning from Formula 1’s exit

Back then, Formula 1 teams faced hurdles when getting custom clearances (while entering and leaving India) for their racing cars and equipment - a situation not faced in other Motorsport markets before. Jaypee Group, the then promoters of the Indian Grand Prix, were levied customs duties as the government refused to differentiate between equipment being imported for racing (cars, pit & garages, etc.) and items imported for sale (such as merchandise).

In 2014, the Customs law was specifically relaxed to make India more attractive for international Motorsport events. However, Customs was one of the two main hurdles, the other being taxation.

In 2017, four years after the last Indian Grand Prix, the Supreme Court ruled that Formula 1 had to pay taxes (up to $15 million) for earnings attributed to the Indian Grand Prix - primarily, the race hosting fees and sponsorship revenue. While Formula 1 settled their tax dues, this was yet another India-specific hurdle for the sport to tackle.

After Formula 1’s exit, the World Superbike Championship also left India out of its calendar from 2014 - further highlighting the difficulty of hosting a Motorsport series in India.

Government Support

The struggles documented in brief above were largely attributed to the lack of government interest or support in hosting a Motorsport series in India. This was one key differentiating factor for the inaugural Formula E race in Hyderabad.

From the announcement and planning stage itself, government support in Hyderabad was evident. The government dovetailed the Hyderabad ePrix with the Hyderabad e-Mobility Week - to promote the city and its EV ambitions. Telangana government’s KT Rama Rao was the political poster child of the Hyderabad ePrix.

In an interview with Deccan Chronicle, Formula E’s sustainability director Julia Palle said, “The local government organised the first Motor E show coinciding with the Formula E signalling strong support to us. They gathered and welcomed all the e-mobility ecosystem stakeholders to make sure our event will benefit beyond the racing and fans.”

Speaking to the Inside Line F1 Podcast, Driven International, the company that designed the road circuit for the Hyderabad ePrix confirmed that the state bodies and local authorities were very supportive during the circuit design and setup phase.

What’s next?

2023 could end up being a bumper year for Indian Motorsport fans - with MotoGP also scheduled to race in the country later in the year (tentative date for MotoGP’s Grand Prix of India: 22-24 September).

The Uttar Pradesh government is backing MotoGP’s Grand Prix of India as expressed by Yogi Adityanath, the Chief Minister of the state, during the official announcement of the race “It’s a matter of great pride for Uttar Pradesh to host such a global event. Our government will provide full support to MotoGP Bharat.”

The most-crucial underlying factor of Formula E’s success and MotoGP’s impending inaugural race is that of government support. Could the winds of change interest Formula 1 to return to India?

Formula 1’s recent expansion of races has been focussed on the American market. The 2023 Formula 1 season will see three races being hosted in the United States of America - Las Vegas joining the existing races in Miami and Austin.

However, America’s gain has been Asia’s loss. Formula 1’s exposure in Asia has only reduced in the last few years despite the explosion in the sport’s fan base. In the last decade, races in countries such as South Korea, Malaysia and China (due to COVID-19) have dropped off the calendar along with the Indian Grand Prix.

As an avid Motorsport fan, I can only hope that Formula 1 follows Formula E’s lead in India - and the much-awaited Indian Grand Prix returns. After all, as one of the largest automotive markets in the world (for two and four wheelers), it’s only fitting that India hosts all three of the major Motorsport events - Formula E, MotoGP and Formula 1.