The govt said it may consider reducing import duty for Tesla as Elon Musk's company gears up to sell electric vehicles in India. But the govt said the consideration will only be taken up if the company decided to manufacture its cars in the country

The development comes days after Tesla CEO Elon Musk raised concern over high import duties charged by the country. Tesla has sought a 40% reduction on fully assembled electric cars.

   

Govt may lower import duty for Tesla vehicles, but on one condition

WHAT?

The govt said it may consider reducing import duty for Tesla as Elon Musk's company gears up to sell electric vehicles in India.

But the govt said the consideration will only be taken up when if the company decided to manufacture its cars in the country. 

WHY?

Even Elon Musk has tweeted highlighting the high import duties charged by the country on electric vehicles. Responding to a tweet on when Tesla will enter the Indian market, Musk said, “We want to do so, but import duties are the highest in the world by far from any large country!”

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The government has announced multiple incentives in the past for companies that produce electric vehicles in the country.

The tax on chargers and charging stations for electric vehicles was also reduced to 5% from 18%.

It may be noted that India’s current import duty structure does not differentiate between electric cars and those that run on traditional fuels.