Govt Wants Elon Musk To Make Electric Cars In India; Import Duty Can Be Reduced?
Tesla CEO Elon Musk wants to launch cars in India, but the country’s import levies on electric vehicles (EVs) are preventing the company from doing so. According to Reuters, Tesla has written to Indian ministries requesting a significant decrease in import tariffs on electric vehicles (EVs).
According to ET, the government is willing to consider lowering taxes and other incentives for the EV manufacturer-provided Tesla commits to manufacturing its electric vehicles in India.
What Is Stopping Tesla To Launch Cars In India?
A few days back, Youtuber Madan Gowri’s tweeted “please launch Tesla cars in India ASAP!”
And Elon Musk responded with: “Want to launch Tesla in India, but import duties are the highest in the world by far of any large country. Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India.”
He added “But we are hopeful that there will be at least a temporary tariff relief for electric vehicles. That would be much appreciated.”
Musk also said that there is no additional benefit for EV manufacturers that are willing to import their cars.
Citing a government official, ET reported that the centre is open to considering reducing taxes and other incentives for the EV maker if the brand agrees to manufacture its cars in the country.
“We will be open to considering, especially if they will set up a manufacturing place here,” the senior official told ET. The official, however, made it clear that any decision on the matter will apply to the entire sector and not just a particular company.
Elon Musk Planning To Open A Factory In India?
Elon Musk responded to a tweet asking if the electric vehicle manufacturer is planning to open a factory in India. In his response, Musk claimed that building a factory is only possible if the imported Tesla cars receive a good response in the Indian market.
In his tweet, he said, “If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely.”
According to Reuters, Tesla has also written to Indian ministries requesting a significant decrease in import tariffs on electric vehicles (EVs). According to reports, the letter stated that lowering customs would “boost demand and generate revenue for the government.”
Tesla, which also plans to begin sales in India this year, suggested in a letter to ministries and the country’s leading think tank, Niti Aayog, that lowering federal taxes on fully assembled electric cars to 40% would be more suitable.