Recently, Tesla has launched their electric cars in the Indian market. Though there has been a mixed reaction by the Indian consumers because of the price of the cars and lack of charging facilities. It is expected that Tesla will find it difficult to compete with the Diesel and Petrol variants as well as Indian electric car manufacturers. Talking about electric cars in order to curb environmental pollution and encourage people to switch to eco-friendly transportation mode, the Union Ministry for Road Transport and Highways of India has approved a proposal to levy a ‘Green Tax’ on old vehicles. Experts argues that, charging taxes on vehicles that cause environmental pollution will decrease environmental loss in a cost effective manner by encouraging behavioural changes among people. The Green Tax can be seen as a measure to strengthen India’s commitment to the Paris Agreement of 2015. As per the agreement India has targeted to reducing the emissions intensity of its GDP by 33-35%
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