The auto OEMs can avail benefit of 15% import duty in India for bringing in their CBU electric vehicles, instead of previous 70% tax
To achieve this reduced import tax benefit, the auto OEMs have to invest at least ₹4,150 crore in India over the next three years
This policy will allow the auto OEMs to import up to 8,000 electric vehicles into India every year, which are priced $35,000 or higher
This move comes as Tesla has been seeking an import duty cut for entering into the Indian market over the last few years
This strategy is expected to boost the EV industry in India by bolstering the launch of cars from OEMs like Tesla, Vinfast etc
These auto OEMs have to begin local manufacturing and ensure at least 25% locally sourced parts in the EVs manufactured here
This target has to be achieved by the OEMs by the end of 3 year period and eventually increase it to 50% at the end of 5 years
It is a major step from Indian government as it currently levies import tax ranging between 70% and 100%, depending on the value of EV
This step is expected to boost the Indian manufacturing industry at large