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Ilon Musk’s electric car company Tesla can make its entry in India with direct-to-customer (D2C) business. This means that the company will be directly imported from America and selling it from its Indian stores instead of making cars in India.
Because the Government of India can rollout the electric vehicle policy in April this year, in which there is a provision to impose only 15% duty on companies that import electric vehicle. Therefore, the company can plan to set up manufacturing plants and build cars in India later. Business Today has given information about this by quoting sources.
Government reduced import duty from 70% to 15%
The Central Government approved the EV policy- ‘Scheme for Promotion of Manufacturing of Electric Passenger Cars in India’ ie (Spmepci) in March last year under its vision to make India a hub of electric vehicles manufacturing.
In this policy, the government has reduced import duty from 70% to 15% to give entry to car companies from all over the world. Foreign companies can take advantage of this exemption on 8000 taxes every year.
Under the policy rules, companies will have to invest at least ₹ 4150 crore and there is no limit on maximum investment. Companies will have to start their manufacturing in India and commercial production of EV within three years.
Auto companies will have to start production of electric vehicles by planting plants within 3 years. Also, within 5 years, the domestic value edition (DVA) will have to reach 50%, that is, local sourcing will have to be increased in making electric vehicles. Auto companies will have to increase local sourcing 25% in the third year and 50% in 5 years.
Tesla did not participate in discussion on EV
The government had recently discussed EV policy with companies, Tesla did not participate in it. But according to reports, the company is keeping an eye on its development. Earlier there was news that the company has also identified the place to set up plants in Gujarat and Maharashtra in India and is also hiring.
On 13 February, PM Modi met Ilan Musk during the US visit.
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Tesla officials will visit India in April: PMO and ministry officials; Possibility of investing ₹ 4 lakh crore in Maharashtra-Gujarat
Company officials are coming to India in April amidst the possibilities of American electric vehicle company Tesla’s entry into India. Here they will be found in officials of Prime Minister Office (PMO), Ministry of Heavy Industry, Ministry of Highways (MORTH) and Ministry of Commerce on issues related to the company operating. This information has been given by Business Today quoting sources.
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