New Delhi. The Center is considering Elon Musk-led Tesla’s request to reduce tariffs for imported electric vehicles (EVs) as the company considers setting up a plant in the country, a media report said on Monday.
According to the Financial Times, citing sources, the automaker has asked the government for an initial tariff concession that would replace India’s hefty cap of 70 percent for cars priced below $40,000 and 100 percent for cars above $40,000. Will reimburse the fee.
“Their view has always been that they need some tariff concessions at least in the interim period. There will be some kind of sunset clause,” an official was quoted as saying.
Tesla had sought concessions as a condition for building a plant in the country. The reduced tariff will be applicable to all EV manufacturers.
Officials said the lower rate under consideration would be 15 percent for EVs of all prices, but the policy has not yet been agreed upon within the government, the report said.
“We want to create a package that is good for India and not be a curated package for one company. Others are free to take advantage of this window provided they meet such requirements,” an official said. “
A report in September said that Tesla is planning to build a factory for battery storage in India and has also submitted a proposal for the same to the government.
The electric car maker proposed to support the country’s battery storage capabilities with its ‘PowerWall’ during recent meetings.
Musk is also aiming to build a Tesla supply system in India.
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