Govt Likely To Offer Partial Customs Duty Relief For Tesla's EVs; Seeks Company's Investment Plans: Report

India is said to be considering partial customs duty relief for Elon Musk-led Tesla Inc's electric vehicle imports into India and has sought the company's detailed investment plans for the country, reports Economic Times.

It had been earlier reported that the government was open to lowering the import duty on electric vehicles (EVs) if the company gives an assurance about starting manufacturing in the country.

Tesla Inc has sought 40 per cent import duty on fully assembled electric cars against the current rate of 60 per cent applicable on those priced below $40,000 and 100 per cent on those above that mark.

As of present, the government's customs duty regime does not differentiate between electric cars and those that run on traditional fuels and imposes high duties to encourage local manufacturing.

Meanwhile, it should be noted that the government has already reduced the Goods and Services Tax (GST) on electric vehicles to five per cent from 12 per cent. It has also lowered the GST on chargers and charging stations for electric vehicles to five per cent from 18 per cent.