Government considering import duty cuts for EVs before Tesla India entry
A business news portal has reported that the Indian government is considering slashing the import duties on electric vehicles to 40 per cent. This will be for imported EVs valued at under USD 40,000, down from the current 60 per cent. For electric vehicles valued at over USD 40,000, the government is considering an import duty cut to 60 per cent from the present 100 per cent.
Discussions over this are ongoing at India's finance and commerce ministries along with Niti Aayog, the government's policy thinktank. The government is considering a policy that will benefit not just EV makers but will also keep in mind the interests of local manufacturers, even though EVs make up a minuscule share of the car market currently, as well as the government. Also being considered is the possibility of regulations that will encourage the local production of electric vehicles in India.
This move is a result of lobbying by Tesla before its planned entry into the Indian market later this year. The company is proposing a cut in duties from the current 60 to 100 per cent for CKDs and CBUs to 40 per cent for EVs. Concurrently, the EV maker is also in discussions with governments in Maharashtra and Karnataka to finalize its manufacturing site in India.
In reply to another user's comment, Tesla head Elon Musk has revealed on Twitter that Tesla will consider manufacturing its EVs in India if the CBUs it'll begin sales with are well received in the country. But Musk added a rider saying duties on EVs in India are the same as that for IC-engined vehicles. He hopes for at least a temporary relief in duties for electric vehicles before local production can begin here.
Source: Reuters
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