Government Urges Tesla To Invest in India, But Refuses To Decrease Import Duty On Vehicles

The US based international automotive firm Tesla is now looking forward to set-up its new EV manufacturing unit in India for which it is involved in deep discussions with the government of India. Founded by Elon Musk, the company aims to manufacture 5,00,000 electric cars on a yearly basis.

Jul 15, 2023 - 21:54
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Government Urges Tesla To Invest in India, But Refuses To Decrease Import Duty On Vehicles
Government Urges Tesla To Invest in India, But Refuses To Decrease Import Duty On Vehicles

The US based international automotive firm Tesla is now looking forward to set-up its new EV manufacturing unit in India for which it is involved in deep discussions with the government of India. Founded by Elon Musk, the company aims to manufacture 5,00,000 electric cars on a yearly basis. 

As per an exclusive report by the Times of India, there is a very high chance that the US global firms might use India as an important production hub to export vehicles in numerous countries in the indo-pacific region. The report also added that the starting price of the Tesla cars produced in India will be around $24,400.66. Experts have added that this price is actually two times more than the affordable MG Comet and half a million rupees more than Tata Nexon EV. 

A year back, Tesla announced plans to enter the Indian market, but its plan shattered. This is because the government showed no interest in decreasing the import duty on the vehicles. The point to be noted is that India now imposes import taxes as high as 100 percent on EVs. The government clearly told the media that as of now, they are not going to entertain a tax waiver for Tesla. 

The Government of India has shown its interest towards Tesla’s manufacturing plans in the country, but in the beginning the company wished to export its vehicles in India to witness the demand. Nonetheless, a change in strategy has forced the company to have rounds of discussions with the government officials back in May in an effort to have incentives for both its cars and battery manufacturing. This shows how Tesla is desperate to foray in the Indian market coupled with a devious approach.

Reports further added that Tesla is now having the discussions with the Indian Commerce and Industry Ministry. Elon Musk is looking for a mutually beneficial agreement, while also assuring a trustworthy competition between domestic manufacturing and exports.