According to a report by the Russian Satellite News Agency, Tesla was approved to launch seven electric vehicles (EVs) in India last year. However, the U.S. electric car maker wants India to lower import duties first before its cars are launched in the Indian market. In response to questions from Twitter users about the matter, Tesla Chairman Elon Musk revealed that he is working with the Indian government on “many challenges” to get Tesla cars into the South Asian country’s market.
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Since 2019, Tesla has been seeking cuts from the Indian government on import duties, which are as high as 110% on high-end electric vehicles. In a letter to India’s Ministry of Road Transport and Highways, the U.S. company asked for a standard 40 percent tariff on electric vehicles.
Under India’s current tariff rules, Tesla will have to pay a 110 percent import duty on its cheapest Model 3 car, which sells for about $47,000 in the U.S. market. The report mentioned that the Indian government has developed a production-linked program for the auto industry, under which any company can get huge tariff concessions if it produces locally in India. If Tesla assembles its cars in India, its imported kits will get zero-tariff concessions.
The Indian government said on Thursday (13th) that Musk was trying to pressure India through social media, Tesla wants India to reduce car import tariffs, but does not commit to production in India.
The Indian government is concerned that lower tariffs will have an impact on the local auto industry. Tata Motors, one of the companies opposed to the move, said making concessions to Musk’s company would go against India’s plan to boost domestic electric vehicle manufacturing.
Last month, Musk tweeted that India has one of the highest import tariffs in the world and that India is taxing clean energy vehicles as heavily as gasoline vehicles, which is not in line with India’s efforts to combat climate change. goals set.