16 Mar 2024

When will Indian buyers get a chance to buy electric cars of foreign companies including Elon Musk's Tesla

Indian buyers may soon get a chance to buy an electric car from Elon Musk's company Tesla.

The Indian government on Friday announced its policy for electric cars made abroad. Through this policy, the government wants to attract investment from foreign companies manufacturing electric vehicles.

According to this policy, companies making electric vehicles like Musk's Tesla and VinFast (a leading Vietnamese electric car manufacturer) will get exemption on investment of more than Rs 4000 crore in India.

EVs with latest technology can be manufactured in India

The Union Government has approved a scheme to promote India as a manufacturing destination so that e-vehicles (EV) with the latest technology can be manufactured in the country. The policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers.

This will provide Indian consumers with access to latest technology, boost the Make in India initiative, strengthen the EV ecosystem by promoting healthy competition among EV players leading to high volume of production, economies of scale, lower cost of production, reduce imports of crude oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment.

Minimum Investment required under the policy is Rs 4150 crore and there is no limit on maximum Investment.

It has been said in the new policy that the import duty on vehicles of such companies will be reduced by 15 percent.

Foreign automobile companies can enter Indian markets

This policy made by the Ministry of Heavy Industries of India can give an opportunity to foreign automobile companies to enter the Indian market with expensive vehicles.

At present this market is being protected through high import duty.

At present, there is an import duty of 35 percent on vehicles costing more than $35,000. 100% levy is levied on vehicles costing more than this.

The price of Tesla's cheapest Model 3 car in the American market is $38,990.

If Tesla invests here as per the government policy then this car can be available here for Rs 37 lakh.

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