According to the economic times of India, as well as Bloomberg and other media reports, India is considering the implementation of up to five years of electric vehicle imports of complete vehicle tax reduction policy, in order to attract Tesla and other companies to sell in India as well as the future of local production of cars in India.
People familiar with the matter said the Indian government is working on a policy that would allow international automakers to import electric cars at a favorable tax rate, provided the manufacturers commit to eventually building the cars in India.
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Of course, the exact details of the policy are still under consideration, and India has yet to make a final decision. The information comes from people with knowledge of the regulations involved in the discussions, who have chosen to remain anonymous as the negotiations are currently under wraps.
In 2021, Tesla had asked for a reduction in import duties on electric vehicles. The company wants India to reduce the import duty on its vehicles from the existing 100 percent to 40 percent, though it depends on the import value of its vehicles.
Additionally, Tesla CEO Elon Musk is expected to meet with India’s Trade Minister Piyush Goyal later this week to discuss imports as well as building a factory. Goyal is currently in San Francisco for ministerial meetings related to the Indo-Pacific Economic Framework and APEC.
It is said that their discussions will focus on matters related to Tesla’s India factory, which will produce electric cars worth $24,000 (Note: currently about 175,000 RMB) for India. In addition, Tesla is also ready to purchase more parts in India as well as laying charging infrastructure across the country.
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