The UK is pushing for a cut in customs duty on electric vehicles in the ongoing negotiations for signing a free-trade deal with India, a senior official confirmed.
At present, there is a customs duty of 60% on imported cars priced below $40,000 while it is 100% on those priced above this point.
The UK has suddenly brought in the new proposal on electric vehicles which is not easy for India to concede. A similar request to cut customs duty on cars was made by US electric vehicle maker Tesla but the government has made it clear that the company must set up manufacturing facilities in India if the company wants to sell its cars in the country.
