New Delhi, Apr 5 (KNN) India has slashed import duties on electric vehicles (EVs), paving the way for Tesla to potentially manufacture its EVs in the country.

The government is now looking to Elon Musk's Tesla to unveil its investment plans for the nation.

In an interview, Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), stated, "We will help them out in terms of giving them the contacts at state level. There have been contacts made at that level with state governments and the central government. VinFast has already announced and we expect a few others."

Last month, India released a comprehensive policy aimed at boosting domestic EV manufacturing.

Under the new rules, companies investing at least USD 500 million and commencing local EV production within three years can avail of tax concessions.

"We expect it to lead to a penetration of four-wheeler electric vehicles to at least 10 per cent by 2030," Singh commented on the policy's impact.

"My view is that if we have these manufacturing units up and running, along with the battery infrastructure that is now going up, it should be closer to 15 per cent by 2030", he added.

While electric two-wheelers have driven India's EV adoption so far, the passenger EV segment is rapidly picking up pace.

EV sales nearly doubled in 2023 and could grow 40 per cent further this year, as per BloombergNEF estimates.

Tesla has long sought lower import taxes before committing significant investments in India.

Recent reports suggest the EV pioneer is scouting locations for a potential USD 2 billion-USD 3 billion factory and plans to raise auto component sourcing from India to USD 15 billion.

With policy incentives and a vast market in place, the ball is now in Tesla's court to formalise its India manufacturing plans.

(KNN Bureau)