The government has clarified that it is not considering any proposal to provide tax concessions on the import of electric vehicles into the country.<\/p>\n
The Minister of State for Commerce and Industry, Som Prakash, said, \u201cPresently there is no proposal either to provide exemption from local value addition cost or to provide subsidy on import duty on import of EVs in India.\u201d He was responding to a question regarding proposals to exempt brands like Tesla from local value addition of cost in heavy batteries, semiconductors and magnetic parts as well as import subsidies on EVs.<\/p>\n
The minister said that the production-linked incentive scheme for the automobile and auto component industry was aimed at providing financial incentives to boost domestic manufacturing of advanced automotive technologies, including EVs and their components.<\/p>\n
The government is also said to have taken steps to boost domestic and foreign investments in India to enhance local value addition under the ‘Make in India’ initiative. PLI schemes for advanced chemistry cell battery storage with a budgetary outlay of Rs 18,100 crore have been approved.<\/p>\n
US-based EV maker Tesla has been in discussions with the government demanding a reduction in import duties. Commerce and Industry Minister Piyush Goyal visited the Tesla factory in Fremont, California last month, where he stated that the company would be doubling its auto component imports from India.<\/p>\n