India mulls tax cuts on imported EVs for a period of 5 years

Manufacturers will have to commit to eventually building EVs in India to avail of the tax cuts.

According to a media report, the Indian government is looking at allowing international automakers to import EVs on concessional duty rates. 

It is said that the government could offer tax cuts on imports of completely built units (CBU) of electric vehicles for a period of up to 5 years. However, to avail of the tax cuts, manufacturers will have to commit to eventually building them in India.

The news comes at a time when Piyush Goyal, Minister of Commerce and Industry, is on a visit to the US to participate in regional trade meetings and woo investments from EV markers. 

The minister also stopped by Tesla’s manufacturing facility in Fremont, California, where he met with engineers and finance professionals working in senior positions.

Source: Bloomberg