India considers slashing electric vehicles tariffs to attract Tesla

India considers tax cuts on imports of electric vehicles for up to five years in an effort to attract companies like Tesla to sell and manufacture their vehicles in the country.

The Indian government is considering an electric vehicle policy that would allow international car manufacturers to import electric battery vehicles with concessional tariffs if they commit to manufacturing them in India, people familiar with the matter told “Bloomberg.”

People who asked not to be identified because of the specificity of the discussions said: “A final decision on policy points had not yet been taken.”

The Austin-based electric vehicle manufacturer sought to cut tariffs on the import of electric vehicles in 2021. It hoped to reduce rates to 40% from the current range of 70% to 100% for its cars, depending on the value of its imports.

Tesla CEO Elon Musk is likely to meet Indian Trade Minister Piyush Goyal later this week to discuss the company’s plans to establish a plant in the South Asian country.