India to facilitate import of electric vehicles conditionally

The Indian government has just adopted a new policy to promote the sale and production of electric cars in the country.

The importation of these vehicles will be facilitated, but in exchange, manufacturers will have to commit to investing in local production.

Among the large producers, it is the American Tesla which should benefit the most from this new policy.

Tesla vehicles in a parking lot at the company's factory in Fremont, California, in late 2023 (illustrative photo).

AP - Noah Berger

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To import a car into India, you have to pay between 70 and 100% of the initial price of the vehicle in addition.

Too expensive, and this prevented Tesla from entering the Indian market.

New Delhi is therefore proposing this: high-end cars, like Teslas, will only be taxed at 15% of their value on arrival, if the manufacturer at the same time commits to investing 500,000 euros in a line. assembly in India, and that, within five years, half of the parts for these cars were manufactured in India.

Analysis by Sumant Banerjee, automotive sector specialist at the economic newspaper

Mint

: “This policy is designed to attract Tesla to India.

Localizing production is going to be a challenge for Tesla as its cars have advanced technology that does not exist in India.

But the Indian government wants Tesla to bring this to the country.

Ultimately, Tesla wants to develop a cheaper car for emerging countries, and India can serve as a production platform for the region.

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Some 82,000 electric cars were sold in India last year, a doubling of sales in one year.

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