Tesla in India
In exchange for the government lowering the import duty on Tesla vehicles to 15% for the first two years of operation, the company is willing to invest up to $2 billion to establish a factory in India.
In exchange for a commitment to some local production, India is working on a new EV policy that will cut import tariffs to as low as 15% starting in August. Currently, import taxes are 100% on cars costing more than $40,000 and 70% on all other automobiles.
Sources claim that if the government accepts the decreased duty for 12,000 vehicles, the Elon Musk-led electric vehicle (EV) manufacturer is prepared to invest up to $500 million, and if the concession is for 30,000 vehicles, up to $2 billion.
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The government is considering whether to invest the $2 billion that Tesla has proposed, but in contrast to Tesla, it wants to import fewer cars at a lower duty.
Tesla, the Ministry of Heavy Industries, the Ministry of Road Transport & Highways, the Department for Promoting Industry and Internal Trade, and the Ministry of Finance did not immediately comment.
Elon Musk has made a lot of noise on India’s import taxes, which are 70% for automobiles under $40,000 and 100% for those over. He had earlier stated that he would be open to joining the Indian market, but he emphasised the obligation as a barrier.
Also read: BharatPe files fresh case filed against Ashneer Grover, company takes legal action
According to sources, Tesla is almost certain to seal an agreement with the Indian government that would allow the company to import its electric cars into the nation beginning next year and open a factory there in two years. According to the article, Tesla intends to purchase up to $15 billion worth of car parts from India in addition to investing an initial $2 billion in a new plant there. Nevertheless, these plans have not been finalised and could see some changes too.
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