The Ministry of Heavy Industries (MHI) on Friday announced a new policy to boost electric vehicle (EV) manufacturing in the country by global players, such as Tesla, VinFast, BYD, Kia, Škoda, BMW, and Mercedes-Benz.
The new policy entails lower import taxes on certain electric vehicles for companies committing to at least $500 million (₹4,150 crore) in investment and a manufacturing plant within three years.
It proposes to reduce import duties for interested EV makers to 15 percent from the current 70 percent or 100 percent on vehicles having a CIF (cost, insurance, and freight) value of $35,000 and above for a period of five years from the date of issuance of the approval letter by the government.
This proposed duty structure aligns with the demands made by Elon Musk-promoted Tesla in its discussions with the Indian government.
According to officials, the policy allows all international players, including Chinese manufacturers, to qualify for a duty reduction, provided they establish manufacturing facilities within three years and achieve a localisation level of 50 percent by their fifth year of operations in the country.
Bu hikaye Business Standard dergisinin March 16, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin March 16, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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