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

‘Phobias Extend Beyond Abrahamic Religions’: India at the UN

Next Story

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

Latest from -Top News

Singapore’s Ruling Party Achieves Landslide Victory

Prime Minister Lawrence Wong, whose party won the election, thanked supporters.,..reports Asian Lite News Singapore’s ruling People’s Action Party (PAP) won 87 of the 97 seats in Parliament in Saturday’s general election,

Jaishankar, Lavrov Discuss Pahalgam Terror Attack

Both the Ministers discussed issues of Russian-Indian cooperation and the aggravation of India-Pakistan relations following the terrorist attack in Pahalgam. External Affairs Minister (EAM) S. Jaishankar spoke to the Russian Foreign Minister

Rajnath Singh to skip Russia visit

The decision comes amid rising tensions between India and Pakistan following the recent terror attack in Pahalgam, Jammu and Kashmir…reports Asian Lite News Defence Minister Rajnath Singh will not likely attend Russia’s

WAVES 2025: Jaishankar Advocates Cultural Pluralism

External Affairs Minister S. Jaishankar delivered a powerful address at the WAVES 2025 Global Media Dialogue, highlighting the significance of cultural pluralism in shaping global change. Speaking on the second day of

India Eyes Supply Chain Shift

India’s electronics manufacturing sector is undergoing a remarkable transformation, positioning the country as a major global hub for production and supply chain diversification. Riding on favourable government policies, geopolitical tailwinds, and a
Go toTop

Don't Miss

Kashmir handicraft all set to conquer European markets

Kashmir’s participation in upcoming Expos and Trade shows which shall

Jaishankar: Unanimous support on need to stand with Lanka

Members of the Parliament including from Tamil Nadu are expected