New Delhi: Tesla Inc. is likely to set up a factory in India if it works with import vehicles, Elon Musk’s executive chief said on Twitter, after the company wrote to the Ministry of India who sought a large reduction in import duties, according to two sources with knowledge of this problem.
However, pitch electric car makers for lower tasks, however, it is likely to face resistance from Prime Minister Narendra Modi who has fought for high import taxes for many industries in an effort to improve local manufacturing.
“We want to do it, but import duties are the highest in the world as far as a big country,” Musk said in reply to a tweet about launching a car company in India.
“But we hope that there will be at least temporary rates for electric vehicles,” added Musk.
Other luxury Ahomaker in India has also lobbied the government in the past to reduce taxes on imported cars but have little success due to opposition from rivals with domestic operations.
Tesla, which aims to start sales in India this year, said in a letter to the Ministry and Thinkers of the leading state of Niti Aayog which cut federal taxes on imports of electric cars which are fully assembled to 40% will be more appropriate, according to these sources , ,
It is comparable to the current level of 60% for cars at prices below $ 40,000 and 100% for them above $ 40,000.
“The argument is that on 40% import duty, electric cars can be more affordable but the threshold is still high enough to force the company to produce locally if demand increases,” said one source. Sources refused to be identified as the letter had not been published.
According to the TESLA website A.S., only one model – Model 3 standard plus models – are given a price below $ 40,000.
Niti Aayog does not respond to comments that are looking for emails. The Ministry was written Tesla to include transportation and the ministry of heavy industry, which did not immediately respond to a request for comments.
The Indian market for Premium EVs, indeed for electric cars in general, there is still a lot in times of growth with vehicles that are too expensive for the average consumer and very small charging infrastructure in its place.
Only 5,000 of the 2.4 million cars sold in India last year were electricity and most were priced at under $ 28,000.
Mercedes Benz Daimler began selling EQ EQC luxury in India last year for $ 136,000, and Audi launched three electric SUVs this week with a sticker tag that began around $ 133,000.
While lower tasks will give Tesla a better chance to test the market, the plan to start sales in India does not depend on changes in government policies, the two sources said.
Dear @elonmusk please launch Tesla cars in India ASAP! 😍 pic.twitter.com/ohFieRzdGW
— Madan Gowri (@madan3) July 23, 2021
Tesla registered a local company in India in January and has increased local recruitment while also looking for showrooms.
Transportation Minister Nitin Gadkari told Reuters in March that India would be willing to offer incentives to ensure the production costs of Tesla in this country are less than it in China, but only if producing locally.
