Tesla Seeks Reduction In Import Duties On Electric Vehicles In India
- ByStartupStory | July 24, 2021
US-based electric car major Tesla has asked for a reduction in import duties on electric vehicles (EVs) in India, a senior government official said on Friday. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60 percent to 100 percent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000. ‘Actually, it’s a revenue matter. But yes, their demand for lower tariffs is in the public domain,’ the official said on the condition of anonymity.
Recently, Union Minister Nitin Gadkari had said Tesla has a golden opportunity to set up its manufacturing facility in India given the country’s thrust on e-vehicles. Various auto components have already been sourced from Indian automakers and setting up base here would be economically viable for it, the road transport and highways minister had said. Gadkari had also exuded confidence that given the improvement in Indian products, within two years India would be capable of producing e-vehicles of Tesla’s standard. He had also said Tesla can make industrial clusters and create and develop its own vendors here. ‘The minister has emphasized that India has the potential to become the largest EV producer in the world in the next five years.’ He further added.
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