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India is considering cutting taxes on imported electric cars for five years to entice companies like Tesla to sell and eventually build cars in the country.
The Indian government is formulating an electric vehicle policy that may allow international manufacturers to import at preferential rates as long as they commit to local production in India. The specific policy outline has not yet been finalized.
Tesla CEO Elon Musk plans to meet India’s trade minister to discuss plans to build a factory in India. Tesla seeks import tariff relief to reduce the current tax rate of 70%-100% to 40%.
India’s electric vehicle market is in its infancy, accounting for only 1.3% of passenger car sales last year. The government launched a US$3.1 billion incentive program in 2021 to increase local electric vehicle production.
(Source: Bloomberg Image source: freepik)
