Explorer

Govt Reviewing Proposal To Cut EV Tariff To Lure Tesla: Report

The government's move might encourage Tesla to expedite the process for setting up its facility in the country.

The government is reviewing a proposal from Tesla, led tech billionaire by Elon Musk that sought a reduction in tariffs for imported electric vehicles (EVs) as the company explores the possibility of establishing a manufacturing facility in India. The request includes an appeal for an initial tariff concession to counterbalance India's existing high customs duties, which stand at 70 per cent for cars under $40,000 and 100 per cent for cars exceeding $40,000, says a report by Financial Times (FT), which cited sources.

The government's move might encourage Tesla to expedite the process for setting up its facility in the country. As a prerequisite for building a manufacturing facility in India, Tesla sought the concession, which, if granted, would make way for reduced tariffs for all electric vehicle (EV) manufacturers.

"Their view has always been that they need some tariff concessions at least in the interim period. It would have some kind of sunset clause," one of the officials was quoted as saying by the FT report.

The officials further mentioned that the reduced rate under consideration would be 15 per cent for EVs of all prices, but that the policy had not yet been agreed upon within the government.

Earlier in September, it was reported that Tesla is considering the construction of a battery storage factory in India, having submitted a proposal to the government. The electric car maker is suggesting bolstering India's battery storage capabilities through its 'Powerwall,' as discussed in recent meetings.  Musk is additionally focused on establishing a Tesla supply system in India.

To recall, Tesla executives also held talks with senior Indian government officials and ministers in May on setting up a manufacturing base for cars and batteries in India. However, the EV shelved its India entry plans because of high import tax structures. According to a previous report by ET, Tesla wants to set up its supply-chain ecosystem in India, which is being seen as a significant opportunity for the country's EV manufacturing space

View More
Advertisement
Advertisement
Mon Mar 17, 9:21 am
connaught place
27.8°
Precipitation: 0 mm    Humidity: 33%   Wind: WNW 15.6 km/h
See Today's Weather
Powered By:
Accu Weather
Advertisement

Top Headlines

FIR Against Orry For Drinking Alcohol During Vaishno Devi Visit, Pic Goes Viral
FIR Against Orry For Drinking Alcohol During Vaishno Devi Visit, Pic Goes Viral
Maharashtra Alert As Hindu Outfits Threaten 'Babri-Like' Action If Aurangzeb's Tomb Not Razed
Maharashtra Alert As Hindu Outfits Threaten 'Babri-Like' Action If Aurangzeb's Tomb Not Razed
'Ranya Rao Hid Gold All Over Her Body, Wherever She Had...': BJP MLA Makes Vulgar Comment
'Ranya Rao Hid Gold All Over Her Body, Wherever She Had...': BJP MLA Makes Vulgar Comment
Saamana Calls Hindu Groups 'Hindu Taliban'; Sparks Political Controversy in Maharashtra
Saamana Calls Hindu Groups 'Hindu Taliban'; Sparks Political Controversy in Maharashtra
Advertisement
ABP Premium

Videos

Aurangzeb Controversy: Political Clashes Over Maharashtra's Historical Legacy & Hindutva | ABP NEWSSaamana Calls Hindu Groups 'Hindu Taliban'; Sparks Political Controversy in MaharashtraBreaking News: Controversy Escalates Over Aurangzeb’s Tomb in Maharashtra, BJP Pushes for RemovalBreaking News: One Terrorist Killed in Handwara Encounter; Security Forces Continue Search Operation

Photo Gallery

Embed widget