MUMBAI, Feb 23: Tata and Mahindra have played a crucial role in the introduction of EVs in the Indian market. These brands have helped normalise the use of EVs by providing good quality EVs. Our Prime Minister, Mr Narendra Modi recently paid a visit to Mr Donald Trump, President of the USA. The Prime Minister of India also met Elon Musk, CEO of Tesla, and had a few discussions. Since this visit, we have come across news stating that Tesla is coming to India. The Government of India has made a few changes to their import rules to favour Tesla’s entry to the Indian market as well as given other global brands an opportunity to set up camp in India. Let’s find out more about the change in the rules and Tesla import!
The Government of India is all set to reduce the import duties on electric vehicles to make way for new global brands, especially Tesla. The Government has decided to lower the import tariff drastically from 110% to a mere 15%. This will make it easier for global brands to bring their EV innovations to India and cater to Indian consumers. According to sources, the policy will mandate a minimum turnover of Rs 2,500 crore by the second year and an investment of Rs 4,150 crore (approx. $500 million) from the brand.
The policy will allow companies investing in it to set up their operations in pre-existing factories. The new policy will not consider any past investments from the company. It will require the brand to invest Rs 4,150 crore. Companies have to apply for this policy within 120 days, which will then allow them to import 8000 EVs annually (priced upwards of $35,000) at a 15% tariff. The approved companies have to set up manufacturing and production facilities within three years, including 25% local value addition. The local value addition should be increased to 50% within 5 years. (AGENCIES)
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