Indian Government Denies Plans for Duty Concessions on Electric Vehicle Imports

The Indian government has clarified that there is no current proposal to offer duty concessions or exemptions from local value wing for the import of electric vehicles (EVs) into the country. Minister of State for Commerce and Industry Som Parkash stated that there is no plan to provide subsidies on import duties for EVs. Responding to questions well-nigh exempting multinational car companies, including Tesla, from local value wing financing for components like heavy batteries, semiconductors, and magnetic parts, Parkash highlighted the existing Production-Linked Incentive (PLI) scheme for the automobile and wheels component industry. The PLI scheme aims to encourage domestic manufacturing of wide automotive technologies, including EVs. The government has allocated INR 25,938 crore for this initiative, focusing on fostering local production and innovation in the automotive sector. Additionally, the government has tried a PLI scheme for wide chemistry cells shower storage with a numismatic outlay of INR 18,100 crore, incentivizing the establishment of large-scale manufacturing facilities for 50 giga watt hours in the country. This refinement comes tween demands, notably from Tesla, for a reduction in import duties on EVs in India. Tesla’s CEO, Elon Musk, had expressed plans to visit India in 2024 pursuit discussions with Prime Minister Modi. The government’s stance emphasizes its transferral to encouraging domestic production and investments in wide technologies.