Pushed by Tesla, India plans to cut import duties on tram manufacturers produced locally

CTOnews.com, Aug. 25 (Reuters)-India is working on a new electric vehicle policy that will sharply cut import duties on some locally made automakers, according to Tesla's proposal.

The policy could allow carmakers to import full-vehicle electric vehicles with a tax cut of as little as 15 per cent, compared with a tax rate of 100 per cent for cars priced above $40,000 and 70 per cent for others, according to two people familiar with the matter.

The CTOnews.com noted that the policy could significantly reduce the cost of importing electric cars and open the door to India for global carmakers other than Tesla. Electric car sales in India account for less than 2% of total car sales, but they are growing rapidly.

Other sources said that low import duties could help Tesla sell his full range of models in India. Other countries have taken similar measures to boost the development of local trams after Indonesia proposed to cut import tariffs on electric car manufacturers that plan to invest from 50% to zero.

India's ministries of commerce and finance, as well as Tesla, did not respond. Sources said the policy was still in the early stages of review and the final tax rate could change.