Indian authorities may significantly reduce import duties on electric vehicles from the brands ike Tesla. Presently, an important duty of 100 percent is levied on electric cars that costs more than $40,000 which eventually makes these vehicles more expensive in India when compared to other countries.
Centre seems to inviting manufacturers like Tesla to setup their local manufacturing facilities in India in place of importing the vehicles to Indian market. These plans seems to be backed with the intentions of government to boost the rate of EV adoption in the country. As per report, It is expected that centre can make a significant decrease in import duties on costlier EV brands like Tesla which will be based on assurances of local production and local sourcing the near future.
If these hints will become true, Tesla will be the first beneficiary as the brand is engaged in talks for the same purpose with the government for a long period. Elon Musk, Tesla CEO has also shown interest to get a level playng field in India and reservations against the high import duties for the vehicles.
Why Indian Authorities Levy High Import Tax On Cars
On one hand, where Indian goverment want to boost the EV adoption in the country. On the other hand, it imposes high import duties on EV cars, why does it do so? Actually, the primary reason to levy huge import taxes on EV cars imported to India is to provide a fair oppotunity to local and domestic manufacturers in order to be capable of competing with the foreign brands making better vehicles.
Nitin Gadkari, Union Minister also stated last year that India invites Tesla to manufacture its vehicle in the country instead of importing CBU of the vehicles.
Why Centre Often Emphasizes On Local Manufacturing ?
Centre is often seen emphasizing on local manufacturing rather than importing EV cars in India. The main reason behind this emphasis is local maufacturing boosts employment and contributes in the overall economic growth of the country.
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