Elon Musk’s Indian entry has been waiting since 2019, emphasizing tax cuts for imported electric vehicles.
Elon Musk has said he will not set up a car manufacturing facility anywhere in India until Tesla first allows cars to be sold and serviced.
Tesla’s entry into India has been waiting since 2019 due to the demand for lower tariffs on electric vehicles imported into India. However, the central government has so far not heeded this demand, claiming that the plant should be set up in India first.
Tariffs on electric vehicles should be reduced
A Twitter user asked Elon Musk if he had any plans to set up a Tesla car factory in India in the future.
Elon Musk responded by saying, “Tesla will not set up factory in any country or territory unless it is authorized to sell or service Tesla cars.”
Tesla wrote a letter to the federal government last year seeking a reduction in the import tax on fully assembled cars.
Currently, imports of fully assembled cars with an engine size, cost of manufacture, insurance, and inventory (CIF) value of less than $ 40,000 or more are subject to 60 percent to 100 percent customs duty.
Urging the government to start production first
Responding to Elon Musk’s letter last year, Federal Highways Transport Minister Nitin Gadkari said, “We welcome Elon Musk selling its Tesla cars in India. But Elon Musk wants to make his Tesla cars in India. Tesla cars can only be sold in India if they are made in India. A car made in China cannot be sold in India. ”
Senior government officials had previously told The Sunday Express that Tesla did not outline any plans to manufacture electric vehicles in its program. The demand for a tax cut does not appear to support the federal government. Because it is assumed that other companies may seek similar offers.
Earlier, a senior government official spoke on the issue and demanded that Tesla reduce tariffs on imports. They are generously welcomed to produce. But Tesla says they should first look at how many people are buying their vehicle in India. They say we will set up the plant if it has the expected sales to lower the tariff first. It is not a car for the poor. Does not produce an inexpensive electric vehicle. He said the question is why we should reduce customs duty when making a super class car.
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