looks like Tesla could finally get a much-needed import tax cut on its vehicles
in India, but there’s a catch.
Government of India formally told Tesla to scale up the domestic sourcing. However, the government has not
revealed a procurement target yet. While the company is still mum on the
Government’s procurement target, it said that around $100 million in parts was
sourced from India back in August. Tesla has not shied away from admitting
that it wants to enter the Indian subcontinent to sell its electric vehicles.
However, it wants to test the waters first considering that it is an unexplored
realm. So, it wants to sell CBU (completely built units) models in India first.
from that, the company feels the mammoth import taxes of CBU’s will affect its
demand. As a result, Musk has urged the Indian Government to reduce the 100
percent import tax. The Government also wants Tesla cars in the country to
be Made in India.
too long ago, the Government of India introduced the PLI (production-linked
incentive) scheme. The scheme promotes the production of electric vehicles in
the country. Tesla was eligible for the scheme but did not apply for the
aforesaid scheme, as per a senior government source. The source claims that
Tesla wants concessional duties without first committing to producing in India.
Furthermore, the official stated that the Government wants Tesla to make EVs in
India. However, it wants the company to provide reliable business plans first.
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