A policy to extend import duty rebates on Tesla electric cars costing more than Rs 30 lakh for a period of two to three years is almost ready for center approval, which might open the door for Tesla to enter the Indian market. Presently, cars that cost more than Rs 33 lakh, including freight and insurance costs, are subject to a 100% import levy in India. A sixty percent duty is applied below this limit.
Tesla had previously requested that the Centre lower the import tax on its vehicles to 15% for the first two years in return for a possible $2 billion investment in India. The amount of bank guarantees has not yet been decided upon, according to a source cited in the paper. Interestingly, if a corporation doesn’t live up to its obligations, the government has the authority to encash bank guarantees.
The decrease in Tesla’s import duties, however, worries Indian automakers. They believe the American automaker would gain an unfair advantage as a result.
Tesla Anticipating in EV Charging Station
The government has provided several incentives for the manufacture of electric vehicles to strengthen the nation’s electric vehicle ecosystem. For example, taxes on chargers and charging stations have been lowered from 18% to 5%, while goods and services tax (GST) on electric vehicles has been lowered from 12% to 5%.
Price breaks will be provided to consumers as further incentives to buy electric cars. Additionally, there would be a Rs 1.5 lakh income tax reduction on interest paid. Additionally, the government is in contact with foreign businesses to establish industrial facilities in the nation.
In response to a tweet regarding the anticipated launch date of Tesla in India, Musk recently stated, “We wish to do so, but import duties are by far the highest of any significant country in the world! Furthermore, it appears that India’s climate goals are not fully aligned with the way clean energy vehicles are treated the same as diesel or petrol. However, we are optimistic that electric vehicles will receive at least a brief tariff break.
