India welcomes Tesla with new EV import scheme

The Indian government has introduced a new scheme aimed at facilitating the entry of US-based electric vehicle giant, Tesla, into the Indian market.

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The scheme, announced by the commerce ministry, allows for the import of completely builtup (CBU) electric passenger cars at a reduced import duty of 15 percent. This move is part of a broader effort to promote investment in the electric vehicle (EV) sector by renowned global manufacturers.

Under the current tax regime, fully assembled CBU vehicles priced above $40,000 attract a steep 100 percent tax, while those below $40,000 are subject to a 70 percent tax. However, with the implementation of the new scheme, companies like Tesla can now import CBUS at the same rate as Completely Knocked Down (CKD) units, which carry a 15 percent import duty and must be assembled locally.