India is trying to reduce import tariffs on electric vehicles from foreign manufacturers, citing the potential boom in electric vehicles.Earlier reports said India may provide EV production costs are lower than in China.. Now, according to a recent report, the Government of India has proposed reducing import tariffs on electric vehicles by up to 40% shortly after Tesla CEO Elon Musk complained about the high tax rates on Indian cars. ..
The report comes from Reuters, Quotes two government officials who wish to remain anonymous. According to sources, India could reduce import tariffs on electric vehicles under $ 40,000 from 60% to 40%. For EVs worth more than $ 40,000, import duties will probably be reduced from 100% to 60%. “We have not yet solidified the reduction of obligations, but there is ongoing debate.” One of the people involved said Reuters..
Proposals to reduce EV import tariffs will come a few days after Tesla’s CEO complains about high tax rates on foreign cars in India.According to reports, while Musk is replying to YouTuber in India, the import tax on EVs in India “The best in the world” That’s the main reason Tesla doesn’t want to import its cars into the country.
“Furthermore, clean energy vehicles are treated the same as diesel and gasoline, but this does not seem to be in perfect agreement with India’s climate goals.” Musk has been added further.
We’ve already seen reports that Tesla may start production of the Model 3 EV in India, but after that proposal there was a public debate among automakers citing the collapse of the “Make in India” initiative. .. but, This proposal is for electric vehicles onlyThe Indian government believes that it should not affect local automakers that produce gas vehicles.
“Since few EVs are imported domestically, lowering import tariffs is fine, but then we need some economic benefits, and we need to balance the concerns of domestic players.” Government officials said.
Following the proposal, Tesla as well as other foreign automakers such as Mercedes and Hyundai endorsed it. Meanwhile, Tata Motors, which makes affordable electric cars in India, and Ola, which is aiming to launch the first electric motorcycle in India, are opposed to this cut.
According to government officials, India’s Treasury and Commerce Department, and Niti Ayog, a federal think tank led by Prime Minister Narendra Modi, are currently discussing the proposal.