There have been ongoing speculations about Tesla, entering the Indian market. In order to make its entry easier into India’s growing electric vehicle market, Tesla has suggested a reduction in import duties for electric vehicles.
The company asked for a 40 percent import tax on fully assembled electric cars in India in order to differentiate them from high-end vehicles.
At present, India’s customs duty system imposes similar tariffs on electric cars and hydrocarbon-powered vehicles in order to promote domestic manufacturing. Additionally, imported cars are subject to customs duties ranging from 60% to 100%, which are determined by factors such as engine size and Cost, Insurance, and Freight (CIF) value.
The central government has stated that it has no plans to provide duty concessions or exemptions for the import of electric vehicles into the country.
In response to questions about exemptions for companies like Tesla from local value addition costs and import duty subsidies for electric vehicle imports, Minister of State for Commerce and Industry Som Parkash explained that a production-linked incentive scheme worth Rs 25,938 crore has been introduced for the automobile and auto component industry. He clarified that there are currently no plans to exempt or subsidize electric vehicle imports in India.
The government has given its approval for a PLI scheme for advanced chemistry cells battery storage, allocating a budget of Rs 18,100 crore. This scheme aims to encourage the development of large-scale manufacturing facilities for ACC batteries in the country.
Reference- Times Of India, Inside EVs, Autocar India, PTI, HT Auto