Tesla in India: The Government of India has announced a new Electric Vehicle Policy (EV Policy) on Friday. This policy was being eyed by leading EV vehicle manufacturing companies across the world including Tesla. In the new EV policy, the biggest emphasis will be on bringing foreign investment to India. Besides, efforts will also be made to make India a leader in EV technology production. In this, foreign companies will have to invest at least Rs 4,150 crore.
Table of Contents
There will be relief in import tax
Electric Vehicle Scheme has been brought under the new EV policy of the Government of India. Tax exemption will also be given in this. Under the new EV policy, if a company invests more than 500 million dollars and sets up a manufacturing plant in the country within 3 years, it will be given relief in import tax. With this, efforts will be made to bring big companies of the world including the leading EV manufacturer Tesla to India.
Global manufacturing companies will come to India
The government said in an official statement that efforts will be made to bring global manufacturing companies to India in the e-vehicle segment. The new policy will work towards strengthening the EV ecosystem in the country. Besides this, advanced technology of EV segment will also be able to come to India. Any amount of investment can be made in this, starting from Rs 4,150 crore. Companies will have to set up manufacturing plants in India within 3 years.
made in india only 50% parts have to be used
According to the new EV policy, companies will have to use about 25 percent parts made in India within 3 years and at least 50 percent parts made in India within 5 years. If a company sets up its plant in India, then it will have to pay 15 percent customs duty on assembling cars priced at $35,000 and above in India. This facility will be available for 5 years.
Shock for Tata and Mahindra
This new EV policy is a blow for Tata Motors and Mahindra & Mahindra. These domestic giants were opposing tax exemption on EV imports. These companies believe that the reduction in taxes will make it easier for global companies to sell expensive EV cars in India. Tesla’s demand was that 70 percent exemption in customs duty should be given on cars priced below 40 thousand dollars and 100 percent exemption in customs duty on EV cars priced above 40 thousand dollars. Commerce and Industry Minister Piyush Goyal had said that India will make its own independent policy without coming under anyone’s pressure. We will not make a policy for any one company. Our effort will be to bring all the EV companies of the world to India.
