"The Indian government is formulating a policy to grant Tesla a reduced import tax rate for a period of 2-3 years."
"Tesla, the electric car manufacturer led by Elon Musk, is on the verge of entering the Indian market. Recent reports indicate that the Indian government is close to finalizing new import duties, specifically targeting global EV makers like Tesla, for cars priced over Rs 30 lakh. The proposed measure involves a temporary reduction in import taxes for 2-3 years, aiming to facilitate Tesla's entry. In return, Tesla would commit to future local manufacturing and provide bank guarantees.
India's current import tax structure imposes high duties on luxury cars, with 100% on those exceeding USD 40,000 and 60% on those below that value. The government's objective is to make Tesla's entry feasible, fostering a long-term commitment to manufacturing within India and boosting the local EV market while creating job opportunities.
However, domestic EV players, such as Ola and Mahindra & Mahindra Group, express reservations about providing special treatment to international EV manufacturers. Ola CEO Bhavish Aggarwal and Mahindra & Mahindra Group advocate for maintaining a level playing field between domestic and international EV makers."
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