Elon Musk-owned Tesla’s India ‘roadblock’ may not be over yet
India imposes a 100% import duty on fully built-electric vehicles that cost more than $40,000 (more than Rs 33 lakhs) and 70% on models priced below. For example, Tesla’s cheapest car, the Model 3 is priced over $40,000 in the US. This import duty not only encourages domestic EV makers but also forces foreign manufacturers to start setting up plants in the country.
According to a report by Reuters, a senior government official claimed that India is working on a new electric vehicle policy. This new rule will reduce the import taxes for automakers who commit to some local manufacturing.
