India mulls five-year tax cut on EV imports to lure automakers like Tesla

Asian Tech Press (Nov 14) -- India is considering a five-year-long tax break on imports of complete electric vehicles to attract global electric car makers such as Tesla Inc., according to Bloomberg.

Citing people familiar with the matter, Bloomberg reported Monday that the Indian government is working on a policy that would allow international automakers to import electric cars into the country at a favorable tax rate, provided the manufacturers commit to eventually producing them in India.

In 2021, Tesla had sought to reduce import tariffs on electric cars to 40% from the current range of 70% to 100%, depending on the import value of the vehicles.

Tesla CEO Elon Musk is likely to have a meeting with India's commerce and industry minister Piyush Goyal in the U.S. later this week, at which he would discuss the company's plans to build a factory in India.

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