India wants Tesla’s Sourcing Plans: The agencies have also inquired about Tesla’s opinions on importing completely assembled automobiles rather than “knocked-down” or partially assembled vehicles.
California-based Tesla addressed Prime Minister Narendra Modi’s government, requesting that the import duty on electric vehicles be cut to 40% from the current 60% to 100%.
According to a source familiar with the situation, India has requested Tesla Inc. to increase local procurement and provide precise manufacturing plans before considering the carmaker’s proposals for lower electric vehicle taxes.
The ministries of heavy industries and finance sought the information from Tesla in a meeting earlier this month, even as the government considers billionaire Elon Musk’s demand for lower electric vehicle taxes in Asia’s third-largest economy, according to the person, who asked not to be identified because the discussions are private.
According to the person, the departments have also questioned Tesla for its ideas on importing fully built automobiles rather than so-called knocked-down units or partially built vehicles, which have a lower import charge.
According to news sources, requests for a comment were not returned by Tesla. India’s Ministry of Heavy Industries and the country’s Ministry of Finance could not be reached for comment right away.
The corporation also requested that the 10% social welfare fee, which is imposed on all imported vehicles and used to fund health and education initiatives, be abolished.
Tesla said at the conference that it has procured components worth $100 million from India thus far and that this amount would rise if any tax breaks were granted, the individual added.
According to the person, Tesla also promised to make major direct investments in sales, service, and charging infrastructure, as well as examine broader manufacturing commitments if it enters the world’s second-most populated country.
Musk has expressed his desire to enter one of the world’s most promising automobile markets for several years, but he has complained that Indian regulations prevent him from testing the waters first with imports, claiming that hefty tariffs make Tesla automobiles “unaffordable.” But India wants Tesla’s sourcing plans and road map before any tax breaks.
