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EV import duty cut likely for cos ready for some local mfg
Mint Mumbai
|August 26, 2023
New Delhi will move slowly on the proposal as lowering of taxes on imported EVS could disrupt local industry
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India is working on a new electric vehicle policy that would slash import taxes for automakers that commit to some local manufacturing, following a proposal by Tesla (TSLA.O) which is considering entering the domestic market, people with direct knowledge said.
The policy being considered could allow automakers to import fully-built EVs into India at a reduced tax as low as 15%, compared to the current 100% that applies to cars which cost above $40,000 and 70% for the rest, said two of the sources, including a senior Indian government official.
Tesla's best-selling Model Y, for example, starts at $47,740 in the U.S. before tax credits.
"There is an understanding with Tesla's proposal and the government is showing interest," said the official, who is familiar with the issue.
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