Before the import tax review, India asked Tesla to give information about manufacturing plans, know the company’s answer

There is still a dispute between Tesla and the Indian government regarding the import tax. At the same time, Tesla has already completed the process of hiring and has also chosen the cities to open the showroom.

The Tesla controversy isn’t over

India has asked Tesla Inc to expedite local procurement and submit manufacturing plans before considering the carmaker’s demands for lower taxes on electric vehicles. Sources have revealed that, at a meeting earlier this month, the Ministry of Heavy Industry and Finance sought details from Tesla, even as the government decided to lower taxes on EVs in billionaire Elon Musk’s Asia’s third-largest economy. examined the demand.

The source said the departments have sought their views from Tesla on importing fully built cars versus so-called knock-down units or partially manufactured vehicles, which attract lower import levies. Tesla did not respond to requests for comment. Representatives from India’s Ministry of Heavy Industries and the country’s Ministry of Finance could not immediately be reached for comment.

California-based Tesla in July wrote to Prime Minister Narendra Modi’s government asking it to reduce import duty on electric cars to 40% from the current 60%. The company had also asked for an end to the 10% social welfare surcharge, which is levied on all imported cars and helps fund health and education programs.

At the meeting, Tesla claimed that it has procured $100 million worth of components from India so far and suggested that the figure would increase after any tax concessions. Tesla also promised to make significant direct investments in sales, service and charging infrastructure, and to evaluate wider investments in the manufacturing sector after entering the world’s second most populous country.

Musk has for many years shown his desire to enter one of the world’s most promising automobile markets, but has complained that Indian regulations prevent him from testing first with imports, as the high tariffs make Tesla cars “unbearable”. make.

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social cause and entrepreneurship is her forte.
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