Volkswagen urges India to lower import tax on electric vehicles
Volkswagen has joined Tesla in urging Indian officials to lower the import taxes they levy on electric cars.
“The electric vehicle market has to be big enough for investment to be made and we shouldn’t put any barriers to it,” Gurpratap Boparai, managing director of Skoda Auto Volkswagen India, told Reuters, saying that a 25 percent drop in import taxes would innovate drive forward and not paralyze the economy.
India normally taxes fully built imported cars at 100 percent of their value, but leaders are considering lowering it to 40 percent after Tesla’s Elon Musk said he would “very likely” to build a factory in the country if residents showed interest in his Fleet of luxury electric vehicles.
Daimler, Mercedes-Benz and Hyundai advocate lower import taxes, but India-based Tata Motors is opposed on the grounds that they could take the business away and affect the country’s efforts to increase local production.
Related: India is considering lowering import tariffs on electric vehicles
Senior government officials said Monday (Aug. 9) that India’s import tax rate on electric cars would increase from 60 percent to 40 percent for vehicles valued below $ 40,000 and from 100 percent to 60 percent for vehicles valued above $ 40,000. Dollars could go down.
India is the world’s fifth largest market for auto sales, but most of the cars sold there cost less than $ 20,000 and very few are high-end electric vehicles. Tesla has argued that lowering import tariffs would make these cars more affordable.
Continue reading: Biden: Electric cars should make up half of car sales by 2030
Last week, U.S. President Joe Biden received support from General Motors, Ford and Stellantis when he said that half of the country’s auto sales should be electric cars by 2030.
These companies signed a pledge to hit a 40 to 50 percent revenue target over the same period as Biden signed a non-binding ordinance to encourage automakers and U.S. officials to push for laws that support the adoption of electric vehicles across the country.