Import Tax Cut In Government's New EV Policy, Tesla's India Plans Boosted
NDTV
EVs accounted for just about two percent of India's total car sales last year, but the government has set a target of 30 per cent by 2030.
The government has cut taxes - as much as 85 per cent - on the import of a certain number of EVs, or electric vehicles, as part of a new scheme to "attract investments by reputed global manufacturers".
The policy - which the government has said is "designed to attract investments in the e-vehicle space by reputed global EV manufacturers" - will potentially boost entry plans of Elon Musk's Tesla, which Bloomberg said in December was close to an agreement to set up a manufacturing plant in Gujarat.
Musk and the Indian government have gone back-and-forth on the subject of tax breaks; the X (formerly Twitter) boss showed an interest in India as early as 2019 but has lamented high import duties that make his cars "unaffordable"; the cheapest Tesla car retails for around Rs 70 lakh each in India.
