Legendary American company Tesla cars may now enter India soon. The country's government could consider granting import exemptions to Tesla as well as reducing import duties. However, for this, the electric vehicle company will have to invest in setting up production centers in the country. Tesla had earlier demanded the Center to reduce import duty on electric vehicles. It wanted to bring the latest electric vehicles as the latest manufactured unit before seeing its assembly and production in the country.
According to official sources, the government will consider the request if Tesla decides to build its car in the country and invest in setting up the plant. However, the official made it clear that any waiver or extension of the waiver in this regard is applicable not only to a particular company but to the entire sector. Several state governments have already taken several steps to promote the central electric vehicle. Apart from promoting the production of electric vehicles in the country, the government will also introduce tax benefits for the purchase of electric vehicles.
Tesla chief Elon Musk said his electric vehicle (EV) company wants to bring cars to the Indian market. However, the country's import duty on EVs is much higher than in the world. At present, India imposes 60 per cent duty on imported cars for less than 40,000 and 100 per cent for cars worth more than 40,000. This fully manufactured unit makes imported cars twice as expensive as many foreign markets.
In order to promote electric vehicles in the country, the government has reduced the GST on such vehicles from 12 per cent to five per cent. GST on chargers / charging stations for electric vehicles has been reduced from 18 per cent to five per cent. Apart from this, the Ministry of Road Transport has issued a notification advising the states to waive road duty on electric vehicles. Which will instead help reduce the initial cost of the electric vehicle.
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