The Government of India has announced to reduce import tax on EVs. Those companies will invest 500 million dollars in India and set up manufacturing facilities locally within 3 years. After the plan, it could help the Tesla company to import car parts outside India.
The Transport Ministry of India strongly recommended that any companies should invest 500 million dollars in India and set up a local manufacturing plant in India within 3 years. The parts of that car’s components share 25 percent sourced domestically. To reduce the import duties 15 percent , the company should import 8000 EVs a year and the price of the car should be 35,000 dollars and above. India currently levies a tax of 70% to 100% on imported cars depending on their value.
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This plan will benefitted Tesla Company. Tesla is a leading electric car manufacturing company in the world. They can not enter India because of the tax issues. They want low import tax. These plans will encourage Tesla to invest in India.
Article source:Techcrunch