Tesla demanded reduction in import duties on its Electric Vehicles in India. CEO Elon Musk said that the company is eager to launch its cars in India but the heavy tariffs are discouraging them to do so. Tesla is hoping for temporary tariff reliefs for their electric vehicles.
In response to the demand put forth by Elon Musk’s vehicle manufacturing firm, the Heavy Industries Ministry has asked Tesla to start manufacturing in India first. They said that India is not giving such concessions to any other auto firm. Giving a duty benefit to Tesla would send a bad signal.
At present, the custom duty levied on cars imported as completely built units ranges from 60% to 100%. The government’s aim of achieving import substitution might be the reason for such heavy custom duties on imported commodities.
Tesla in India:
Musk’s Tesla launched its first electric car in the year 2008. The company has seen a lot of success since then, especially in US and other developed nations. The company has also been very successful in extending its global reach in the past. It is now planning to set up plants in India as well.
Union Minister Nitin Gadkari said that Tesla has a golden opportunity to set up its manufacturing facility in India. States like Gujrat, Maharashtra and Karnataka have offered various incentives to the firm. Gujrat offered 1000 acres of land in Mundra to Tesla for its manufacturing facility. Tesla’s initiative of a zero-emission society coincides with the Indian view. This is why the government is urging the firm to set up manufacturing plants in India.
As of now, Elon Musk has been denied his request for tariff concessions. The India government asked the firm to start manufacturing in India first. Till then, stay tuned with Artifex.News for further updates.
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