Volkswagen is also calling for lower import duties on electric vehicles (EVs) in India to help increase demand for green vehicles. “The demand for EVs needs to be huge enough for investments to come, and for that, we should not be putting barriers,” Gurpratap Boparai, Managing Director of Volkswagen India, said.

Mercedes-Benz and Hyundai Motor also have the suggested tax cuts, but domestic rivals oppose them, saying it will harm India’s push to boost local production. “I am not saying that local production should not be promoted, but a tax duty of 100 per cent is very high at this time,” said Boparai.

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Volkswagen is investing billions of dollars in bringing battery-powered cars and expects to sell global vehicle sales by 2030. In July, Volkswagen started sales of 3 Audi electric SUVs for $133,0000, and it further plans to launch its luxury Porsche Taycan EV in India. “Establishing EVs is backbreaking work. And not having a clear way and not decreasing import duties will slow the progress in adoptions as well as manufacturing,” Boparai added.