Tesla appeals India, to Lower Import Duties on EV's-Hyundai extends support

Tesla appeals India, to Lower Import Duties on EV’s-Hyundai extends support
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Tesla appeals India, to Lower Import Duties on EV’s-Hyundai extends support

Highlights

  • Tesla has requested the Indian government to reduce the import duties on EV’s and the Hyundai India, has extended its support for the appeal, of lower import duties.

In the recent time, the focus is on the growth of electric vehicles. The Hyundai India extended its support to Tesla, for appeal for lower import duties. The manufacturer is expecting a reduction in duties for imported EVs, thus would help the company to lower the prices. Presently, A CBU car demands nearing to 60 to 100% custom duty, depending upon, both the engine size as well as the cost.

Hyundai Motor India MD and CEO S S Kim, stated that, they came to know that, Tesla wishes to have some duty cuts with regards to CBU imports, hence it would be quite helpful for the OEMS to reach few economy scales in this very price competitive segment.

Presently, both Indian central government as well as the individual state government are keen to offer tax benefits, incentives as well as rebates when it comes to electric cars. However, the catch is, they tend to charge a very high amount for electric vehicle custom duties. As a result, the retail prices tend to shoot up massively.

In his recent tweet, the Tesla Boss, Elon Musk, replied to a twitter user, that Tesla would like to enter Indian Market, but the hurdle is the import duties are definitely among the highest in the entire world. The most affordable Tesla (model 3) it costs around whopping Rs.28 lakh ( As per the dollar conversion rate), the same might cost around Rs. 60 lakh in India.

Hyundai, added that, the EV localization is a very lengthy process in India, and as the nation is progressing, when it comes to EV space. If the government provides some relief in the import duties, it can definitely help manufacturers bring imported electric cars to India, in order create market demand.

Hyundai is also making plans to launch a mass-market electric vehicle, which might be much more affordable when compared to Kona EV, in India by 2024. Alongside, even companies such as Mahindra, Maruti Suzuki and Tata are planning for budget electric vehicles, even though the time-frames may not be very close.

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