India mulls five-year tax cuts for electric vehicles amid bid to woo Elon Musk's Tesla
Narendra Modi-led government was considering tax cuts on the import of completely built units of electric vehicles for up to five years. The policy would also allow international car manufacturers – such as Tesla – to import battery-powered vehicles on concessional duty rates if they commit to eventually building them in India. The report however indicated that a final decision was yet to be taken on the contours of the policy.
Vehicles imported to India as fully completed units currently face tariffs ranging from 70% to 100%. Meanwhile India is also considering duty concessions on electric vehicles as part of its free trade agreement with the UK. Both countries are looking to finalise a deal by the end of 2023 and are expected to hold a fresh round of in-person talks soon.
Another Bloomberg report quoting sources said recently that New Delhi was thinking of imposing a 30% concessional tariff on 2500 EVs imported from the UK each year with a cost of more than $80,000. India has seen a growing demand for electric cars from the middle-class and rich consumers. However high prices and a dearth of options, combined with a shortage of charging stations have hindered adoption.
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