Tesla demanded reduction of import duty before setting up the plant in India

At present, the customs duty on fully imported cars imported into India is between 60 and 100 per cent.

Mumbai: US electric car maker Tesla has demanded a reduction in import duty on electric vehicles in India. Alan Musk has demanded relief in car import tax from the Indian government as the market for electric vehicles in India is still booming and small companies are exploring the possibility of starting a business in India in the near future.

A senior Indian government official told Alan Musk on Friday. At present, the customs duty on cars is between 60 to 100 per cent of all imported units in India.

The size and price of this engine depends on the insurance. In India, 60% import duty is levied on electric vehicles imported from abroad if the market value is less than 40 40,000 and more than 40 40,000. "It's really about government revenue," the official told PTI.

But their demand for fee reduction is in the public domain and on behalf of all other companies seeking to enter the market for electric vehicles in India. Recently, Union Minister for Road Transport and Highways Nitin Gadkari said that the market for e-vehicles in the country is open, the market is huge so Tesla has a golden opportunity to set up its manufacturing unit in India.

Under the government's plan to focus on electric vehicles, the policy commission has advised the government to reduce the tax to 40%. Looking at Tesla's portfolio now, Tesla's only car, the Tesla Model 3 Standard Range Plus, is cheaper than 40 40,000 at US prices.