Feb 02, 2023
India on Wednesday said it will raise taxes on imported
cars and motorbikes, including electric vehicles (EVs), as it seeks to boost
local manufacturing in line with Prime Minister Narendra Modi's "Make in
India" campaign ahead of elections in 2024.
All vehicles with a landed cost of less than $40,000 will be taxed at 70%, up
from 60% earlier, a move analysts say could impact demand. The landed cost
includes the vehicle's price tag plus insurance and freight costs.
Import tax on all semi-knocked-down cars - where major parts are imported
separately and the final vehicle is assembled in the country - will be raised
to 35% from 30%.