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Tesla to First Start Manufacturing its iconic Electric Vehicles in India, Before Any Tax Concessions Can Be Considered: Govt Sources

Government sources said that the Ministry of Heavy Industry has asked the Tesla Company, which is American electric car company

New Delhi: Government sources said that the Ministry of Heavy Industry has asked the Tesla Company, which is American electric car company, to start the manufacturing on its iconic electric vehicles first in India before any tax concession is given.

They Gived that statement the Indian government is not giving a any concessions to the any auto firm so far and giving duty benefit to the Tesla Company will not give it a very good sign at all to other companies investing billions of dollars inside the India.

Tesla Company Demand

The Tesla company has demanded a reduction in import duty on electric vehicles (EV) in India.

Currently, customs duties range from 60 per cent to 100 per cent, depending on the engine size and cost, insurance and freight value, much more or less than the 40,000 dollar on the all cars imported as completely built units (CBUs).

In a letter to India’s Ministry of Roads, the US firm had also said that the effective import duty of 110 per cent for zero-emissions vehicles is “prohibitive” on vehicles with customs duty of more than USD 40,000.

The tesla company also requested that to the indian government to standardize to the tariff on all the electric cars to about 40% irrespective of customs value and also withdraw the social welfare surcharge of 10% on all electric cars.

It is also a stated that all these changes will give a huge impetus to the growth of the Indian EV ecosystem and the company will make necessary direct investments in the sales service and charging infrastructure and significantly increase purchases from India for a its global operations.

The Minister of the Road Transport and Highways had gived that statement the Tesla Company is already sourcing a various auto components from the automakers in the country and also setting up a base and here may be economically viable.

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