Advertisement

Maharashtra wants lower taxes for Tesla and imported EVs; Writes to centre

In a move to facilitate the entry of bigger players and offer a push to electric mobility in India, the Minister of Environment of Maharashtra, Aaditya Thackeray, has written a letter to the Finance Minister of India, Mrs Nirmala Sitharaman. In his letter, he has requested the Central Government to introduce new reforms in the electric vehicle sector of India, one of which is to reduce import duties on electric vehicles.

Aaditya Thackeray also mentions a few other requests and measures, which can bring down greenhouse emissions and air pollution and eventually give a boost to the sales of electric vehicles in India.

In the letter, he has mentioned that the current reforms for electric mobility at both state and national levels have been instrumental in boosting the sales of electric vehicles. One such reform was offering a subsidy on the sales of electric vehicles. Due to such measures, sales of electric vehicles recorded a growth of 153 per cent in 2020-2021.

Giving a push to the sales of electric vehicles and inviting bigger players in the EV industry like Tesla and Rivian in India, Thackeray requested to introduce time-bound concessions in the import duty of electric vehicles in the country.

Maharashtra wants lower taxes for Tesla and imported EVs; Writes to centre

He has stated that the current import duties charged on CBUs and CKDs are equal for electric vehicles, which is a barrier to the growth of electric mobility in India. Currently, the vehicles priced below $40,000 are taxed 60 per cent of import duty, while the vehicles priced above $40,000 are taxed 100 per cent of import duty.

Thackeray wants easy loans for EVs

The State Minister of Environment also requested the Central Government to coordinate with the RBI to make priority sector lending for electric vehicles. He feels that this should be done, as some banks and NBFCs are hesitant in offering loans on electric vehicles due to rear asset and business model risks. Due to this, the loans for electric vehicles are offered at higher interest rates, as compared to IC-engine vehicles.

Thackeray feels that if all the measures and requests he has mentioned in the letter are worked on, the cumulative investment in the electric vehicle sector can go up to Rs 19.7 lakh crore by 2030. This letter by Aaditya Thackery has caught the limelight just at the right time when Tesla has requested the Central Government for reducing the import duty to 40 per cent for electric vehicles. There is no confirmation from the end of the Central Government on this request, which is further delaying the official debut of Tesla in India.