On February 16, it was reported that the US electric car maker Tesla’s entry into the Indian market was blocked, and CEO Elon Musk (Elon Musk) has repeatedly complained that India has refused to cut taxes on Tesla’s electric vehicles. Recently, Indian officials said they were puzzled why Tesla did not apply for any incentives in India.
There are several Production Linked Incentives (PLI) schemes in India that benefit businesses that locally produce eco-friendly vehicles, auto parts and batteries. According to an Indian government official, Tesla is eligible to participate in several PLI programs but has yet to apply for any of them.
The Indian official insisted that Tesla wants India to recognize its need to lower tariffs on imported cars in a possible deal, but did not commit to building a factory in India.
They (Tesla) did not apply,” the official said. “Tesla could benefit from the PLI program in the auto industry, such as producing advanced chemistry batteries in India, but it simply wants tariff relief and nothing to start production in India. Promise of.
The Indian government plans to provide companies with financial incentives of up to 18% to encourage automakers and parts makers to use local talent to build factories in the region.
What India wants to create is a core financial incentive scheme that subsidizes all associated parties. Twenty companies including Hyundai Motor India, Suzuki Motor Gujarat and Mahindra have submitted PLI investment proposals.
It was reported last month that Prime Minister Narendra Modi’s “Make in India” initiative aimed at boosting local manufacturing could benefit both Tesla and the Indian government. However, the two sides have yet to reach an agreement.
India is still waiting for Tesla to submit full plans for the Indian market. But Tesla’s premise for moving forward with the project appears to be India’s intention to lower the steep tariffs on imported cars in the first place. “India wants Tesla to produce cars locally, but they must first submit a clear business plan,” the Indian official added.
Indian officials have spoken out on multiple occasions about Tesla’s request to lower import duties.