Tesla’s Arrival in India Imminent with Updated EV Import Rules

Tesla’s Arrival in India : Friends, Tesla’s car is coming to India and a new policy has been approved by the government. As soon as Tesla enters India and now you must read this post till the end.

According to the most recent policy issued by the Indian government, manufacturers of electric vehicles must invest a minimum of USD 500 million, or around Rs 4,150 crore, to operationalize local manufacturing plants within three years.

Tesla’s Arrival in India Imminent with Updated EV Import Rules

As long as the manufacturer establishes a manufacturing facility in India within three years, cars with a Cost, Insurance, and Freight (CIF) value of USD 35,000 (more than Rs 29 lakh) will be subject to a 15% customs duty for a period of five years, as is the case with Completely Knocked Down [CKD] units. Moreover, by the third and fifth years, respectively, they must attain 25% and 50% localization.

• The Indian government approves legislation to encourage investment in the EV industry.
• Businesses can invest up to Rs 4,150 crore, with no cap.
• Requirement: Establish manufacturing facilities in India and start EV commercial production within three years.
• Encouragement: Reduced customs tax rates for limited automobile imports in exchange for investments in EV manufacturing facilities.
• Tesla advocated for lower import taxes, but international and Indian manufacturers objected.
• Localization targets: 25% by the third year and 50% by the fifth.

Government highlights benefits:

• Access to cutting-edge technology
• Improvement of the Made in India sector
• Bolstering the electric vehicle ecosystem
• Fostering competition
• High-volume production
• Economies of scale
• Reduced production costs
• Decreased imports of crude oil
• Reduced trade deficit
• Reduced air pollution
• Positive effects on health and the environment.
• More Details at here

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