The Indian government is considering a reduction in the import duty of electric cars by up to 40%. Two senior government officials were informed about this. Let us tell you that a few days ago, Tesla company owner Elon Musk appealed to the Indian government to reduce the import duty on electric cars. Officials said that the government is in discussion to reduce the import duty from 60% to 40% on vehicles costing less than $40,000.
At the same time, the government is considering reducing this rate from 100% to 60% for vehicles worth more than $ 40 thousand. One of them said that we do not confirm the fee reduction, but the discussion is going on on the subject. India is the fifth largest car market in the world with annual sales of about 3 million vehicles, but most cars sold here cost less than $20,000. At the same time, the sales of electric cars in these cars are very less and the sales of luxury electric cars are negligible in India.
According to the news, Tesla had urged the Indian government to reduce the import duty on electric cars, so that the sales of electric cars can be accelerated. This sparked a rare public debate among automakers as to whether such a move would contradict India’s push to ramp up domestic manufacturing. Despite this, the government is considering reducing the import duty, so that the sale of vehicles can strengthen the economy.
An official said that cutting import duty is not a problem as India does not import large quantities of electric vehicles, but we need some economic benefit out of it, and we also need to take care of the interests of domestic carmakers. Will happen. Officials said that talks are on between the Prime Minister, several ministries, and stakeholders on the subject. However, there is no response from the government on this subject yet.