Tesla founder and CEO Elon Musk had said that his company Tesla is facing challenges in starting its operations in India. Now on this Telangana Commerce and Industry Minister KT Rama Rao has asked him to set up a shop in Telangana.
Tesla founder and CEO Elon Musk had said that his company Tesla is facing challenges in starting its operations in India.
Tesla (Tesla) Founder and CEO Elon Musk (Elon Musk) Said that his company Tesla is facing challenges in starting its operations in India. Now on this, Telangana Commerce and Industry Minister KT Rama Rao has asked him to set up a shop in Telangana. The minister responded to Musk on Twitter, saying he would be happy to work with Tesla in India or Telangana to address the challenges of setting up shop. He said that his state is one of the top business destinations in India.
The billionaire had said in a tweet post two days ago that he is working with the government on many challenges. Musk was asked by a user whether there is any update on the launch of Tesla in the country. Musk has been working for his cars in India since the year 2019. In the field of American electric cars, talks between the giant Musk and the central government about the local factory are stuck. There is also a dispute about this that the import duty in the country has become as high as 100 percent.
Central government criticized Musk
Musk’s tweet has faced severe criticism from the central government. Tesla can assemble and sell cars in India by bringing them in CKD (Completely Knocked Down) form with zero duty. India has also implemented the PLI scheme for the auto sector. In this, incentives have been given especially for electric vehicles. Under these, if Tesla produces in India, then it will get the benefit.
Musk tweeted last month that import duties in India are one of the world’s highest and that the country sees clean energy vehicles on par with petrol vehicles, which is not in line with its climate goals. The billionaire said setting up a factory in India can be expected if the California-based car maker first imports the vehicles and inspects the situation.
Tesla’s demand for tax cuts on imported electric vehicles has received a mixed response. The India arm of Volkswagen AG and Hyundai Motor India Limited have supported the move. Whereas, Mahindra & Mahindra Limited has said to review the duty on imports with lower domestic duty.