Govt. may offer import duty cuts on EVs exceeding Rs 30 lakh

It could pave the way for brands like Tesla to introduce their products in the Indian market.

According to a media report, the government is close to finalizing a policy to extend concessions on import duties on electric cars exceeding Rs 30 lakh for 2-3 months. This could pave the way for brands like Tesla to introduce their products in the Indian market.

The report states that Tesla could be offered tax concessions in return for bank guarantees for a proposed investment to set up an electric vehicle factory in India. The American EV maker plans to invest up to US$ 2 billion if the Indian government reduces the import duty on electric cars to 15% for the first 2 years of operations.

There have been reports indicating that Tesla and the Indian government were close to finalizing an agreement that would enable the EV maker to import its electric cars into the country in 2024.

Currently, the government imposes an import duty of 100% on cars with cost, insurance and freight value of more than US$ 40,000.

Source: ET Auto