Tesla CEO Elon Musk recently revealed why his company has not entered India as yet. In a statement, Musk has blamed high import duties on electric cars for blocking the entry of Tesla vehicles in the country.
Though, a slew of measures to promote the use of electric cars are being taken by India lately. The country recently slashed Goods and Services tax (GST) on electric vehicles to 5% from the earlier 12%, but it levies high duty on imported vehicles to protect domestic automakers.
“I’m told import duties are extremely high (up to 100%), even for electric cars. This would make our cars unaffordable,” Musk said late on August 15, while responding to a tweet from an Indian follower.
Also, the GST Council in its meeting last month cut the tax on electric vehicles (EV) from 12% to 5%, effective August 1, 2019.
The council has also slashed rate for EV chargers from 18% to 5%, making electric vehicles affordable for buyers.
