In a major move to promote electric vehicles (EVs), the government is considering a substantial decision.
Reports indicate that the government intends to slash import taxes on EVs, potentially reducing them from a staggering 100% to a mere 15%.
This reduction could also extend to certain specific car models.
Experts familiar with the matter reveal that India is diligently crafting a fresh electric vehicle policy.
This policy takes into account a proposal from Tesla, suggesting a potential reduction in import taxes for select vehicle manufacturers committed to local production.
The focus is on companies eyeing India’s growing electric vehicle market.
Key Aspects of the Proposed Policy
Under the proposed electric vehicle policy, manufacturers might be allowed to import fully assembled EVs into India, subject to a nominal 15% tax.
This would be a notable shift from the existing framework, where a steep 100% tax applies to cars valued over $40,000, and a 70% tax for lower-cost vehicles.
Tesla’s Proposal and Industry Impact
Tesla’s pitch for reduced import taxes gains significance. For instance, Tesla’s popular Model Y, a top-seller worldwide, starts at $47,740 in the US before taxes.
This suggests that the government is seriously considering Tesla’s proposition.
Market Response and Tata Motors
The news of potential import tax reductions has triggered a dip in Tata Motors’ stock value. Tata Motors’ shares have experienced a decline of approximately 6.40%.
The company’s stock fell below Rs 600, marking a two-month low.
Notably, Tata Motors holds a significant share in India’s electric vehicle market, with its Nexon model being a top-selling electric car in the country.
