March 16, 2024
2 mins read

Tesla’s India Entry Boosted With New EV Policy

The Government of India has approved a new electric vehicle (EV) policy that is designed to attract investments in the EV space by global manufacturers like the Musk-run electric car company.

Tesla lovers in the country are anxiously waiting for the first response from Elon Musk after the government approved a new electric vehicle (EV) policy that is designed to attract investments in the EV space by global manufacturers like the Musk-run electric car company.

It was in 2015 when Prime Minister Narendra Modi visited Tesla headquarters in Palo Alto, California and met the billionaire who gave the Prime Minister a tour of the company’s electric car plant.

In later years, the billionaire sought customs duty to be lowered so that he could bring Tesla vehicles to the country.

Presently, customs duty on cars imported as completely built units (CBUs) varies from 60-100 per cent, depending on their cost.

In the new policy, the government has reduced the customs duty to 15 per cent, with certain riders.

“The customs duty of 15 per cent (as applicable to completely knocked down or CKD units) would be applicable on the vehicle of minimum value of $35,000 and above for a total period of five years subject to the manufacturer setting up manufacturing facilities in India within a 3-year period,” according to the government.

This now paves the way for Musk to enter the Indian market.

Last year, PM Modi met Musk in the US and appreciated his efforts at making technology accessible and affordable in various sectors.

The Prime Minister invited Musk to explore opportunities in India for investments in electric mobility and the rapidly expanding commercial space sector.

After hearing PM Modi’s ‘Make in India’ pitch, the Tesla CEO announced that his electric vehicle and battery company will come to the country “as soon as it is humanly possible”.

“He (PM Modi) really cares about India because he’s pushing us to make significant investments in India, which is something that we intend to do and we’re just trying to figure out the right timing,” said the billionaire.

In the new EV scheme, the government mentioned that a minimum investment of Rs 4,150 crore (about $500 million) will be needed to set up manufacturing facilities and production started within three years and reach 25 per cent DVA (domestic value addition) by three years and 50 per cent DVA within 5 years at the maximum.

India’s EV market has the potential to achieve over 40 per cent penetration with $100 billion revenue by 2030.

ALSO READ: Starship Will Be On Mars In 5 Years: Musk

Previous Story

Artistic and Delectable Botanical Afternoon Tea Experience: Marriott Park Lane, London

Next Story

Indian-Origin Couple, Daughter Killed in ‘Suspicious Fire’ in Ontario

Latest from -Top News

Canada, US back in trade war?

U.S. President Donald Trump said that all ongoing trade talks with Canada will be terminated, with new tariffs possibly on the horizon. Canadian Prime Minister Mark Carney has described trade negotiations with

Supreme Court curbs judges’ powers to block Trump

The US Supreme Court has ruled that federal district judges do not have the authority to issue nationwide injunctions against President Donald Trump’s executive order targeting birthright citizenship, handing the administration a

Rubio to host Quad partners in Washington

The July 1 meeting comes amid growing complexity in intra-Quad relations….reports Asian Lite News The United States will host a high-level Quad Foreign Ministers Meeting on July 1 in Washington, D.C., as

US to slash funding for global war crimes probes

The recommendation, made quietly on Wednesday, includes terminating support for projects in Iraq, Sri Lanka, Nepal and the Gambia….reports Asian Lite News The Trump administration is pushing to drastically reduce US government

UAE credit soars to the top

S&P Global, Moody’s Investors Service, and Fitch Ratings — have all assigned strong sovereign credit ratings to the UAE In a strong show of confidence in the United Arab Emirates’ economic resilience
Go toTop

Don't Miss

India sets eyes on the sun

ISRO Chairman Somanath says the Aditya-L1 satellite for the Sun

405 Indians stranded in Pakistan to return

The Indian Mission in Islamabad has asked all individuals listed