Tesla had requested a reduction in India’s import tariffs on electric vehicles
Tesla faces challenges with the Indian Govt.
“Still working through a lot of issues with the government,” Musk stated on Twitter early Thursday in Asia, in response to a user who inquired about Tesla’s launch in the South Asian country.
For years, Tesla CEO Elon Musk and Prime Minister Narendra Modi’s administration have been in talks, but conflicts over a local factory and the country’s high import tariffs of up to 100% have led to a stalemate. The government has requested the electric vehicle manufacturer to increase local procurement and provide precise manufacturing plans; Musk has demanded cheaper taxes so that he may expand his business. Musk has asked for lower taxes so that Tesla can begin selling imported vehicles at a lesser cost in a budget-conscious market.
Tesla has asked India to lower import duties on electric cars (EVs) last year. Before any tax breaks can be considered, the Heavy Industries Ministry has requested the electric vehicle manufacturer to start p roducing its renowned electric vehicles in India.
According to government sources, no other automaker receives similar perks, and offering Tesla duty exemptions will send a negative message to other companies who have spent billions of dollars in India. Currently, cars imported as completely built units (CBUs) are subject to customs duties ranging from 60% to 100%, depending on the engine size and cost, insurance and freight (CIF) value of less than or greater than $40,000.
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