India mulls five-year tax cuts for electric vehicles amid bid to woo Elon Musk’s Tesla

The Indian government may soon impose taxes on the import of electronic vehicles. An EV policy is reportedly in the works and the country is also considering tax cuts on imports of some vehicles from the UK as part of a free trade agreement. The updates came even as Union Minister Piyush Goyal visited the Tesla plant on Monday and noted that the US carmaker was on its way to double its component imports from India.

People familiar with the matter told Bloomberg on Tuesday that the Narendra Modi-led government was considering tax cuts on the import of fully-built electric vehicle units for up to five years. The policy would also allow international car manufacturers – such as Tesla – to import battery-powered vehicles at concessional duty rates if they eventually commit to building them in India.

However, the report indicated that a final decision had yet to be made on the contours of the policy. Vehicles imported into India as complete units currently face tariffs ranging from 70% to 100%.

Meanwhile India is considering duty concessions on electric vehicles as part of its free trade agreement with the United Kingdom. The two countries are looking to finalize an agreement by the end of 2023 and are expected to hold a fresh round of personal talks soon.

Another Bloomberg report citing sources recently said that New Delhi was considering imposing a concessional tariff of 30% on 2500 EVs imported from the UK each year at a cost of more than $80,000.

India has a growing demand for electric cars from the middle-class and affluent consumers. However high prices and a lack of options, along with a shortage of charging stations have hindered adoption. The government launched a $3.1 billion incentive program in 2021 to boost local EV production.

(For agency input)

Milestone Alert!Livemint tops the charts as the fastest growing news website in the world 🌏 Click here for more information.

Get all Industry News, Banking News and Live Coin Updates. Download the Mint News App for Daily Market Updates.


Updated: 14 November 2023, 04:52 PM IST

Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at The content will be deleted within 24 hours.

Read original article here

Leave a Comment