+
Indian FM Denies Plans for Electric Vehicle Import Tariff Reduction
POWER & RENEWABLE ENERGY

Indian FM Denies Plans for Electric Vehicle Import Tariff Reduction

Union Finance Minister Nirmala Sitharaman refuted the claims that the government is contemplating a reduction in import tariffs for electric vehicles if car manufacturers collaborate with local production units. This clarification follows a previous report by Reuters stating that the central government is potentially considering a decrease in import duties, potentially as low as 15%, from the current rates of 100% for vehicles exceeding ₹33 Lakhs in cost and 70% for others.

Addressing reporters at the B20 summit, Union Finance Minister Nirmala Sitharaman stated, "I do not have any proposal in front of me to lower the import duties on electric vehicles."

This reduction in import duties could benefit companies like Tesla, which have expressed interest in entering the Indian market and have submitted a proposal to establish a local car manufacturing facility. An official familiar with the matter was cited in the report as mentioning that there seems to be an alignment with Tesla's proposal, and the government is displaying interest.

Concerns held by Tesla regarding the Indian market are noteworthy. Elon Musk, the founder of Tesla, has raised concerns about the high tariff rates in India. After careful consideration, the company initiated discussions about potentially entering the Indian automobile market. In 2021, Tesla advocated for a reduction in the existing 100% import tax imposed on electric vehicles (EVs) in its efforts to establish a presence in India.

However, the potential agreement between Elon Musk and Indian authorities did not come to fruition, as the Indian government stressed the necessity for a solid commitment to local manufacturing as a prerequisite for any arrangement.

The clarification provided by Nirmala Sitharaman has dampened the expectations of several manufacturers that had risen after the Reuters report. It remains uncertain at this point whether the decision to maintain the existing import tax rates will impact Tesla's plans to establish its car manufacturing facility.

See also:
Maharashtra's electric vehicle power sales surge 216%
India approves 10,000 electric buses for sustainable urban transport


Union Finance Minister Nirmala Sitharaman refuted the claims that the government is contemplating a reduction in import tariffs for electric vehicles if car manufacturers collaborate with local production units. This clarification follows a previous report by Reuters stating that the central government is potentially considering a decrease in import duties, potentially as low as 15%, from the current rates of 100% for vehicles exceeding ₹33 Lakhs in cost and 70% for others. Addressing reporters at the B20 summit, Union Finance Minister Nirmala Sitharaman stated, I do not have any proposal in front of me to lower the import duties on electric vehicles. This reduction in import duties could benefit companies like Tesla, which have expressed interest in entering the Indian market and have submitted a proposal to establish a local car manufacturing facility. An official familiar with the matter was cited in the report as mentioning that there seems to be an alignment with Tesla's proposal, and the government is displaying interest. Concerns held by Tesla regarding the Indian market are noteworthy. Elon Musk, the founder of Tesla, has raised concerns about the high tariff rates in India. After careful consideration, the company initiated discussions about potentially entering the Indian automobile market. In 2021, Tesla advocated for a reduction in the existing 100% import tax imposed on electric vehicles (EVs) in its efforts to establish a presence in India. However, the potential agreement between Elon Musk and Indian authorities did not come to fruition, as the Indian government stressed the necessity for a solid commitment to local manufacturing as a prerequisite for any arrangement. The clarification provided by Nirmala Sitharaman has dampened the expectations of several manufacturers that had risen after the Reuters report. It remains uncertain at this point whether the decision to maintain the existing import tax rates will impact Tesla's plans to establish its car manufacturing facility. See also: Maharashtra's electric vehicle power sales surge 216%India approves 10,000 electric buses for sustainable urban transport

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?