How will lower import tax duties for Tesla EVs impact Indian car makers?

In a significant move, the Indian government is reportedly contemplating a new electric vehicle (EV) policy aimed at reducing import taxes for car companies, opening the doors for high-end EV manufacturers like Tesla Inc. to enter the burgeoning Indian market. Under this proposed policy, carmakers committing to local manufacturing could benefit from a substantial tax cut. Presently, cars with a price tag above $40,000 (INR 33.29 lakh) face a hefty 100% import tax. However, the new policy might enable these companies to import fully-built electric vehicles at a reduced tax rate, possibly as low as 15%.