By Aditi Shah, Aditya Kalra and Nikunj Ohri
NEW DELHI (Reuters) -India is working on a new electric vehicle policy that would slash import taxes for automakers that commit to some local manufacturing, following a proposal by Tesla which is considering entering the domestic market, people with direct knowledge said.
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The policy being considered could allow automakers to import fully-built EVs into India at a reduced tax as low as 15%, compared to the current 100% that applies to cars which cost above $40,000 and 70% for the rest, said two of the sources, including a senior Indian government official.
Tesla’s best-selling Model Y, for example, starts at $47,740 in the U.S. before tax credits.
“There is an understanding with Tesla’s proposal and government is showing interest,” said the official, who is familiar with the issue.
India’s commerce ministry,…
