Indian gov’t considers slashing import tax on EVs after Tesla’s push

Details:

• The Indian government is in discussions to slash the tax rate to 40% from 60% for imported electric vehicles (EVs) for those valued (including the car’s cost, insurance, and freight) at less than US$40,000. For cars above US$40,000, India is considering slashing the tax rate to 60% from 100%.
• Tesla last month had sought the government to lower import duties on EVs to 40% to make the cars more affordable and increase sales.

Dive deeper:

• Tesla is planning to enter the Indian market later this year. Its founder Elon Musk had said that the high import duties had delayed the commercial launch and that he might consider setting up a local manufacturing unit if the company does well in the market.
• India is one of the largest car markets in the world with annual sales of roughly 3 million vehicles, but is driven by the sales of the more affordable sub-US$20,000 car segment. EVs are also gaining traction but have a minuscule presence in the market – something Tesla would like to capitalize upon.