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Will Elon Musk-led Tesla enter India soon? Government formulates policy for concessional import duty

Tesla in India soon? Elon Musk-led American electric vehicle maker Tesla is on the verge of entering the Indian market as the government finalizes a policy to increase concessional rates. import taxes But electric cars More than Rs 30 lakh (about $36,000) for 2-3 years. The move comes as India aims to boost employment through local manufacturing and reduce the prices of electric vehicles.
Tesla may be offered lower import duties in exchange for a bank guarantee for investment in building an electric vehicle factory in India, an ET report quoted sources familiar with the matter as saying.
Currently, India imposes 100% import duty on cars priced above $40,000 (about Rs 33 lakh) and 60% on cars below that limit. However, Tesla has expressed willingness to invest up to $2 billion if the Indian government offers a reduced import duty of 15% on imported electric cars during the first two years of operation.

Tesla in India soon?

Tesla in India soon?

To ensure timely investment and setting up of local factories, the government is considering temporarily reducing import duty on the basis of bank guarantee. The exact quantum of bank guarantee has not been determined yet. Bank guarantees can be encashed if companies fail to adhere to specified deadlines for making investments.
While Tesla’s potential entry into the Indian market has raised interest, Indian automakers are taking a cautious approach. Concerns have been raised about the possibility of Tesla gaining unfair advantages without a solid investment plan.
Last month, Mahindra & Mahindra (M&M) Managing Director Anish Shah had said that his company had communicated with government officials that global electric vehicle (EV) makers should be encouraged to invest in India.
“It should be a level playing field…It is important to invest in India. Our approach is essentially to create a strong industry in India, and not a situation where manufacturing is done outside India, and India just becomes an importer of products,” Shah was quoted as saying at the World Economic Forum in Davos. Was. Any specific reference to Tesla.
Domestic auto companies like Tata Motors and M&M are already producing EVS At local level.

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