- Contemplating Tesla’s appeal, Indian market may trim tariffs on imported electric vehicles, with officials eyeing a potential 15% cut in customs duty.
In response to Tesla’s request, India is contemplating a tax reduction for imported electric vehicles. The tax break is essential for Tesla’s manufacturing plant establishment, as reported by the Financial Times.
As per the Financial Times, Tesla has requested an initial decrease on customs duty for imported cars in our country.
Currently, vehicles below $40,000 incur a 70% import duty, further those above $40,000 attract a 100% import duty.
Quoting officials, the FT report highlights the government’s contemplation of reducing duty to 15% for all-priced electric vehicles.
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moreover, the report emphasizes that this policy hasn’t been agreed upon internally.
An official quoted by the FT expressed Tesla’s need for tariff concessions in the interim, suggesting a potential sunset clause.
Another official added that they aim to create a package beneficial for India, not tailored exclusively for one company, with others free to capitalize on the opportunity, provided they meet specified requirements.
This potential factory in marks Tesla’s sixth global facility. Elon Musk has hinted at a cost-effective Model 2, fitting for India’s price-conscious market.
Piyush Goyal from India to meet Elon Musk this week
Commerce Minister Piyush Goyal, a distinguished presence at San Francisco’s economic forums this week, is gearing up for a pivotal meeting with Tesla’s visionary leader, Elon Musk.
This encounter assumes heightened significance, echoing the impactful discussions between Prime Minister Modi and Musk in June.
As India strategically positions itself to enhance collaboration with the tech giant, Goyal’s engagement underscores the nation’s commitment to fostering innovation and forging international partnerships.
The talks in San Francisco carry the potential to shape the trajectory of India-Tesla relations, signaling a substantial step in India’s pursuit of technological advancements and sustainable economic growth.
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