Government strict on Tesla’s demand to reduce import duty, said – company is pressurizing to reduce duty through social media
There is currently a PLI scheme in India for automobiles, especially electric vehicles, under which Tesla will benefit from producing locally.
Tesla car may come to India in CKD form.
world’s largest Electric Vehicles company Tesla (Tesla, The government has become strict on the demand of reducing the import duty. The government alleges that Tesla is pressurizing to reduce import duty through social media. The government named the world’s richest man Elon Musk The billionaire said that his company Tesla is facing challenges while working with the Indian government to launch its cars in the country. Musk has been trying to pressure the government through social media and wants Tesla to reduce import duties on its cars in India without committing to production in the country.
business today Sources told that the government will not bow down to the pressure strategy. He said that at present in India there is a PLI scheme for automobiles, especially electric vehicles, under which Tesla will get the benefit of producing locally. Tesla can bring the cars in CKD form with zero percent duty and assemble them in India.
Import duty should be reduced to 40 percent
Musk’s Tesla, which wants to enter the Indian market, is demanding exemption from import taxes. He told the government that the 100 per cent import duty on vehicles above $40,000 is “prohibitive”. Most Tesla models cost more than $40,000, which means the company will have to pay the full import duty. Elon Musk has asked the government to reduce the import duty to 40 percent.
Tesla car will come to India soon
India has kept import duty high to promote local manufacturing. The government had earlier asked Tesla to manufacture its cars locally, and not to import them. Recently, Union Minister for Road Transport and Highways Nitin Gadkari had said that Tesla will soon enter the Indian market. I told Tesla executives not to make cars in China and not sell them in India.
Gadkari said, I told them. Come to India, make it here, sell here and export from here. The government will provide you all the help and support that you need. The minister had then said that Tesla would soon come to the country and he had started marketing it.
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