- The government is considering reducing import duties on electric vehicles to a range of 15-30%, with a specific focus on EVs priced between $25,000 and $35,000.
- If the proposed 15% import tax is implemented, the import duty on completely built-up (CBU) vehicles will be the same as that for completely knocked down (CKD) cars.
- Currently, CBU vehicles priced below $40,000 face a high import duty of 70%, while vehicles priced above this threshold are subject to an even higher import tax of 100%.
- These discussions gained momentum after Tesla engaged with the Indian government, signaling the government’s interest in promoting the adoption of electric vehicles in the country.
- The potential reduction in import duties for EVs aims to make them more affordable and accessible to consumers, which could help accelerate the adoption of electric vehicles in India.