Central Government has also provided many statements regarding giving more incentive to Tesla if they set up its production unit in India.
- Central Government giving incentive to Tesla if they set up its production unit in India
- Few days ago, Elon Musk CEO tweet about the considering its Unit in India
- Recently GST on electric vehicle has been strike down from 7% to 5% and 18% to 5% for Charging station
Over the last year, Tesla’s Elon Musk cited the high import duties as the main reason why he didn’t enter the Indian market. While, the import taxes on the petrol- and diesel-powered vehicles and the zero-emission vehicles are the same which makes their EV’s very expensive in the Indian market. On this point, Elon Musk tweeted that,” We want to do so enter India, but import duties are the highest in the world by far of any large country! Moreover, the zero-emission vehicles are being treated as the Petrol or diesel engine, which does not seem entirely consistent with the climate goals in India”.
While, talking about the import duties a senior government official has told the Economic Times of India is open to considering lowering the imported taxes especially for zero-emission vehicles, only with the condition of setting up its production unit in the Indian market. It should be noted that at a point India was considered setting up Tesla’s Gigafactory before making its move to China. The American electric vehicle manufacturer Tesla approached the central government of India to lower down the import duties as they should be treated as EV’s not as Luxury vehicles.
The Government has also in recent times lower down the goods and series taxes on electric vehicles and charging stations. On zero-emission vehicles were slashed recently by 7 percent to 5 percent while the GST on charging stations and chargers are down by 18 percent to 5 percent. In addition, that incentive is Also provided on the purchase of EV’s and an income tax reduction of Rs 1.5 Lakh on interest paid is also availed. Tesla Appears to have sought a 20 percent reduction in import duty on EV’s priced below USD 40,000 and 100 percent on those above the threshold limit. Tesla Model 3 test mules have been spotted and are expected to launch in India soon.