Government considers sharp import tax cuts on EVs after Tesla lobbying: Report

NEW DELHI: India is considering slashing import duties on electric cars to as low as 40%, two senior government officials told Reuters, days after Tesla Inc’s appeal for a cut polarised the country’s auto industry.

For imported electric vehicles (EVs) with a value of less than $40,000 – including the car’s cost, insurance and freight – the government is discussing slashing the tax rate to 40% from 60% presently, the officials told Reuters.
For EVs valued at more than $40,000, it is looking at cutting the rate to 60% from 100%, they said.

“We haven’t firmed up the reduction in duties yet, but there are discussions that are ongoing,” one of the officials said.

India is the world’s fifth-largest car market with annual sales of about 3 million vehicles but the majority of cars sold are priced below $20,000.