Elon Musk’s Tesla asked to share its plans for India by govt

12th September 2021

12th September 2021

Elon Musk’s electric carmaker Tesla has reportedly been asked by the Indian government to share its manufacturing and investment plan in India. 

According to sources, the top government officials met Tesla for discussions a month, where the government asked the company to share its proposal in detail. “We want Tesla to do business in India. But the relation has to be reciprocal. India should gain in terms of investment, employment.”

The world's largest electric car manufacturer had received the licence to sell four models in India as of the end of August. Although no release dates or prices have been disclosed, it is expected that electric vehicles would be accessible in the country by the end of the year.

Additionally, India’s heavy industries ministry has asked Elon Musk to start manufacturing in India before any tax concessions can be considered for Tesla. 

According to Minister of State in the Ministry of Power and Heavy Industries, Krishan Pal Gurjar, the Centre has no proposal to smoothen Tesla's entry into India. He also added that the government is however taking steps to promote the use of electric vehicles by lowering domestic taxes and adding charging stations.

They said that the government is not giving such concessions to any auto firm and giving duty benefits to Tesla will not send a good signal to other companies that have invested billions of dollars in India.

Tesla earlier demanded a reduction in import duty on electric vehicles. Currently, customs duty ranging from 60% to 100% is charged on cars imported to India. This duty is based on factors such as cost, engine size, insurance freight value less or above $40,000. 

Musk also noted that Tesla is "hopeful that there will be at least a temporary tariff relief for electric vehicles”



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