India Considers Dramatic EV Import Duty Slash From 110% To 15%: What Does It Mean For The EV Industry

The Indian government is weighing a significant reduction in import duties on premium electric vehicles (EVs), potentially slashing them from the current 110 per cent to just 15 per cent. This move is aimed at attracting major global EV manufacturers to invest in the Indian market and boost the country's electric mobility ambitions and we are sure Tesla is one of the companies to benefit if this goes through. 
Here are some key points:

Targeted Duty Reduction: 

The proposed reduction would apply to premium EVs priced above $35,000 (₹26 lakh approximately)   

Conditions for Manufacturers: 

To benefit from reduced duties, manufacturers must commit to substantial investments in India, including establishing local manufacturing facilities. There are reports that a minimum investment of ₹4,150 crore would be required. Manufacturers will also have to meet progressive turnover targets and local value-addition percentages.

Goals of the Policy: 

The government aims to encourage global EV giants to set up production in India. This would increase domestic EV production and create jobs. The policy also aims to make premium EVs more accessible to Indian consumers.

Potential Impact: 

The move could allow companies like Tesla to enter the Indian market on more favourable terms. It is expected to stimulate competition and innovation in the Indian EV sector.

Policy details: 

There are reports of a limit of 8,000 vehicles per manufacturer per year that can be imported under the reduced tax rate. The potential policy shift signals India's strong commitment to accelerating the adoption of electric vehicles and positioning itself as a key player in the global EV industry.