Elon Musk: It is not going to be easy for Elon Musk to make his Tesla debut in India. “Still working on many challenges with the government,” the billionaire businessman said in his Twitter post. He said this in response to a question from a user who asked if there was any update regarding Tesla’s launch in the country.
On what issue is the conversation stuck?
Musk has been trying to land his cars in India since 2019. The ongoing talks between the US giant electric vehicle company and the central government are stuck regarding setting up of a local factory and import duty of up to 100 percent of the country.
Musk’s tweet criticized
Musk’s tweet has been strongly criticized by the Center. Tesla can bring in CKD (Completely Knocked Down) cars with zero duty and assemble and sell them here. India has introduced a PLI scheme for the auto sector, especially for EVs, under which Tesla can benefit from the production situation here.
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According to the Economic Times, government sources said, with such tweets, Tesla is trying to pressure the government through social media and this is not the first time this has happened. He said, Musk is hoping to cut import duty on cars without making any commitment to produce in India.
Musk also raised the issue of higher import duty last month
Musk tweeted last month that India is one of the world’s highest import duty countries and the country is treating clean energy vehicles like petrol, which does not match its climate goals. The billionaire said a factory in India has “great potential” if the California car company can first import and test vehicles.
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Companies react differently
Tesla’s demand for a tax cut on imported EVs has met with mixed reactions. Volkswagen AG’s India and Hyundai Motor India Ltd. supported the demand, while Mahindra Ltd. Demanded review of import tariff with lower domestic levy.
The government has asked the EV company to increase local procurement and share detailed manufacturing plans. On the other hand, Musk has demanded a tax cut, so that Tesla can start selling imported vehicles at a low price in this budget-conscious market.
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