Volkswagen after Tesla call for lower import tax on EVs in India

by SpeedLux
Indian road traffic

Volkswagen has called for lower import duties on electric cars in India, thus echoing Tesla’s recent call that has brought a focus into the country’s electric auto industry.

Reducing duties on electric vehicles even to 25% – from existing levels as high as 100% – would not pose a “big threat” to regional players, but would help to drive investment, the German automaker’s India head informed Reuters in an interview.

Volkswagen is exploring ways to launch EVs in India from its Volkswagen and Skoda brands, but would need to see lower import duties, stable policies on taxation, and long-term incentives before taking any action, Boparai said. The development of charging infrastructure will also affect its decision.

India taxes fully-built imported cars, including EVs, as high as 100%, but the government is discussing a proposal to decrease rates to as low as 40%, days after Tesla Inc’s asked for a cut.

Other international automakers such as Daimler’s Mercedes-Benz and Hyundai Motor are also supporting the proposed cuts, but domestic automakers like Tata Motors, the owner of Jaguar Land Rover, is opposing them, saying they would negatively impact India’s push to increase local production.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SpeedLux

SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.

Subscribe

©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More