Tesla My Not Get Full Benefit of Investment in Charging Infrastructure for Lower Import Tax on Evs in India, Government Planning to Change Policy

A new EV policy can be announced soon to increase the manufacturing of electric vehicles (EV) in the country. In this policy, the limit of funds spent on infrastructure related to charging can be fixed for tax exemption on imported EV. The American EV maker Tesla plans to start business soon in India.

An EV policy was issued last year. In this, imports on import electric vehicles were reduced from about 100 percent to 15 percent to attract EV companies like Tesla. However, with this the condition was that EV makers, who took advantage of low tax, would have to invest a minimum of $ 500 million to set up a factory.

For the benefit of low tax by changing this EV policy, expenditure on infrastructure related to charging can be limited to about five percent of the total investment of EV maker. A source associated with this industry said that this decision of the Central Government could be to give priority to manufacturing. The Ministry of Industries did not answer the email sent for comments in this regard. In the new EV policy, the turnover for car makers can be a condition to increase the turnover of Rs 2,500 crore within the second year of starting business. With this, the government can reduce import duty further.

The new EV policy can be announced in mid -March. Applications received for this can be approved in the next few months. Billionaire Elon Musk -led Tesla may initially depend on its gigafactory in Berlin, Germany for import in India. After this, the company will start manufacturing in the country. Last week, Prime Minister Narendra Modi also held a meeting with Musk during a visit to America. A recent Bloomberg report reported that Tesla plans to sell electric cars in Delhi, Mumbai and Bangalore initially. It is not known which Tesla models will be brought to the country. Tesla has factories in the US, China and Germany. The tariff can be reduced on the import of electric vehicles in India as part of the trade deal with the US.