Indian Government is considering significant tax cuts on the importing Completely Built Units of electric vehicles. The move is taken to attract major EV players in the world like Tesla to have a domestic manufacturing plant in the country. The Government seeks to take this step for the next five years in order to help companies like Tesla to have a desirable customer base in the country. Check out more details of the news below.
New Electric Vehicle Policy in the Pipeline?
Indian Government is planning to implement a new electric vehicle policy to help international brands to import Completely Built Units of their electric vehicles on reduced tax rates. The new policy is ultimately aimed to promote these manufacturer to have their manufacturing facilities in the country.
Earlier in 2021, an EV manufacturing firm based in Austin requested duty cuts on electric vehicle imports. The company expected these taxes to be reduced from 70-100 percent to 40 percent.
Tesla’s CEO, Elon Musk is expected to have a meeting with Indian Trade Minister Piyush Goyal this week. The discussion is likely to be centered around the establishment and setting up of Tesla manufacturing facilities in the South Asian Nations. Currently, the minister is attending the ministerial engagements of Asia-Pacific Economic Cooperation Indo-Pacific Economic Framework.
Trade Minister Likely to Meet Elon Musk this week
Visited @Tesla’s state of the art manufacturing facility at Fremont, California.— Piyush Goyal (@PiyushGoyal) November 14, 2023
Extremely delighted to see talented Indian engineers & finance professionals working at Senior positions and contributing to Tesla’s remarkable journey to transform mobility.
Also proud to see… pic.twitter.com/FQx1dKiDlf
Tesla Electric is also planning for its presence in some of the world’s vibrant markets where electric vehicle market is witnessing unprecedented growth rates. If Tesla sets up a domestic manufacturing facility in the country, it will prove beneficial in terms of manufacturing sector growth and employment generation.
Even though, EV industry is one of the rapidly growing sector in the industry in India, Electric vehicle accounts only 1.3 percent of all the vehicles in the country. A shift towards EVs can benefit our country for many aspects such as achieving our Nationally Determined Goals (NDCs) and persuing a sustainable growth as well.