Government Aims to Cut Down Import Taxes For Boosting Electric Car Production

The Ministry of Heavy Industries issues a notification regarding detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India”. The government aims to cut down the import taxes for foreign automakers under its new EV policy provided they invest in India’s EV production facilities.

During the conference, Union Minister H.D. Kumaraswamy also clarified that Tesla is not expected to set up production in India and will rely on the Berlin-based facility, indicating that Tesla cars will arrive in India as CBU.

The Government clarifies that to encourage the global manufacturers for investing under the scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W. CBUs should have minimum CIF value of USD 35,000 at reduced customs duty of 15% for 5 years from the application approval date.

The Government of India further states in its new scheme that with a minimum investment threshold of Rs 4,150 crore, the EV policy is set to provide an enabling environment for leading automobile companies to establish manufacturing footprints in the country.

Source: NDTV Auto