Tesla In India will get a boost after the EV sector policy change in India. With its amazing electric vehicles, the company will now have an ease to enter the Indian market post its favorable conditions. Thus, the government changes the EV (Electric Vehicles) policies, which will favor Tesla’s entry into India. There will be certain conditions that the investors will follow. EV policies will favor the growth of the industry further. There are several EV companies in India doing well.

Tesla In India: The Company Might Get A New Beginning In India Soon

Tesla gets favorable conditions from the government to start its work in India. The government makes some changes in the EV policies. Thus, the investors will follow these guidelines to exist as a Tesla distributor in India. The government is now providing lower import duties on electric vehicles to investors investing at least Rs. 4150 Crore or 500 million dollars in India. Apart from that, they also have to comply with the conditions of maintaining some domestic manufacturing facilities for their business in India.

Thus, the investors have to invest a minimum of $500 million in India with a domestic manufacturing facility of 25% initially. Within three years, the domestic manufacturing facility should be 25% of the whole. While in five years, they have to take it to 50% domestically procured components. All the businesses that successfully maintain these conditions will be able to import 8,000 electric vehicles annually. Apart from that, if the imported vehicles have a value of $35,000 or above, they will have a reduction of 15% of the import duty.

Here, the investors maintaining the 50% DVA ( Domestic Value Addition) only will get the benefits of reduced import duty and 8,000 vehicles imported annually. For those looking more at DVA, Domestic Value Addition refers to the percentage of localized components used in manufacturing. In the current policy, it is 25% in three years and 50% in five years.

Tesla in India will create a new icon of status for people. We all have our own diesel and petrol vehicles brand to represent our status. Thus, Tesla will get to the top place in electric vehicles. All the investors must commence the business within a given grant of three years. They can’t take more time.

Tesla’s vehicles will be visible on the roads of several Indian cities soon. Until then, everyone is interested in its brand new beginning and launch in the country. Tesla took a long time to get this final permission.


Discover more from industrialfront

Subscribe to get the latest posts to your email.

Leave a comment

Your email address will not be published. Required fields are marked *