Elon Musk wants to bring Tesla to India, blames high import duties on electric vehicles

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Tesla CEO Elon Musk has said his electric vehicle (EV) company is keen to launch cars in India, but the country’s import duties on electric vehicles are “by far the highest in the world.”

Responding to an Indian YouTuber on Twitter, who asked him to launch Tesla cars as soon as possible in India, Musk blamed the high import rates in the country.

“We want to do it, but import duties are by far the highest in the world of any major country!” he wrote.

“In addition, clean energy vehicles are treated the same as diesel or gasoline, which does not appear to be entirely in line with India’s climate goals,” he added.

Last year, a report said India had taken a series of measures to promote the use of electric cars in the country.

The government has reduced the Goods and Services Tax (GST) on electric vehicles to five percent from 12 percent previously, but to protect domestic automakers, it levies 125 percent tariffs on imported vehicles.

“I am told that import duties are extremely high (up to 100%) even for electric cars. It would make our cars unaffordable,” Musk said earlier in responding to a tweet from an Indian follower.

In the wake of the Union budget providing for tax relief for the purchase of electric vehicles, the GST Council at its meeting last July reduced the tax on electric vehicles (EV) from 12% to 5% , as of August 1, 2019.

The paired rate cuts are expected to further stimulate the electric vehicle sector. The budget last year proposed an income tax deduction of Rs 1.5 lakh on interest paid on loans taken to purchase electric vehicles.

–IANS

you / vd

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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