With Tesla push, India eyes lower import taxes if EV makers build locally

Reuters was first to report India is working on a new electric vehicle policy that would lower import taxes for automakers that engage in some local manufacturing, following a proposal from Tesla considering entering the domestic market . The proposed policy could allow automakers to import electric vehicles built entirely in India with a reduced tax of just 15%, compared to the current 100% that applies to many electric vehicles. Shares of Tesla’s potential domestic rivals, such as India’s Tata Motors, fell nearly 3% according to the Reuters report, while rivals Mahindra and Mahindra fell more than 2%, dragging the auto index down. reference to an intraday low with losses of 1.1%.