New Delhi,
The Indian government is considering an import duty slash on electric vehicles (EVs), according to two senior government officials. This news comes after Tesla Inc appealed for a cut.
As per the sources, the government is conducting discussions to slash the tax rates from 60% to 40% for imported EVs costing less than $40,000, including the vehicle's cost, insurance and freight. For EVs costing more than $40,000, the government might cut rates to 60% from 100%.
PM Narendra Modi, Finance Minister, Commerce Minister and Niti Aayog will decide after consulting all stakeholders.
Tesla had mentioned that reducing EVs import duties will make them affordable for people and improve sales. This argument started a public debate in the auto industry as it might contradict India’s move to increase domestic manufacturing.
The officials said that the government might be in favour of a cut if Tesla can provide benefit to the domestic economy by manufacturing locally or at least giving a timeline for the same.
Elon Musk, CEO, Tesla had tweeted that a local factory in India was quite likely if the company was successful with imports.
Tata Motors and Ola, which produce affordable electric cars and scooters, are against this proposed cut of import duties.
Source – Reuters
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