Centre approves new EV policy in boost to Tesla's market entry plans

New Delhi: The Centre on Friday said it will lower import taxes on certain electric vehicles for companies committing to at least Rs 4,143 crore ($500 million) in investment and a manufacturing facility within three years, potentially bolstering Tesla's market entry plans.

The new policy mandates companies to invest a minimum of Rs 4,143 crore ($500 million) in the country and will allow them three years to set up local manufacturing for EVs with at least 25 per cent of the components sourced locally.

Companies that meet these requirements will be allowed to import 8,000 EVs a year at a lower import duty of 15 per cent on cars costing Rs 2,90,0019.50 ($35,000) and above. India levies a tax of 70 per cent or 100 per cent on imported cars depending on their value.