No red carpet welcome for Tesla’s arrival in India: Govt denies import duty concession for EVs

The speculations of Elon Musk-led EV manufacturer Tesla’s arrival in India have been there for a while now. In fact, the EV maker proposed reduction on import duties for EVs in India to facilitate its arrival in the growing EV market of India. The company had requested a 40 percent import duty on fully assembled electric cars in India. The aim is to distinguish its electric vehicles from luxury cars.
Currently, India’s customs duty system treats electric cars and hydrocarbon-powered vehicles equally, imposing significant tariffs to encourage domestic manufacturing. Further, imported cars face customs duties ranging from 60% to 100%, depending on factors like engine size and Cost, Insurance, and Freight (CIF) value.
However, the central government on Wednesday, said that it is not thinking about any proposal to offer duty concessions or exemption from local value addition for the import of electric vehicles (EVs) into the country.

Responding to queries about potential exemptions for companies like Tesla from local value addition costs and import duty subsidies for EV imports, Minister of State for Commerce and Industry Som Parkash stated that a production-linked incentive scheme with a budgetary outlay of Rs 25,938 crore has been announced for the automobile and auto component industry. He further stated that there is currently no proposal for exemption or subsidy on EV imports in India.
The government has also approved a PLI scheme for advanced chemistry cells battery storage with a budget of Rs 18,100 crore, encouraging the establishment of Giga scale ACC manufacturing facilities in the country. Inputs from PTI.
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