Notwithstanding eyeing the growing Indian market for the closing three years, US electric-powered car pioneer Tesla’s founder Elon Musk has nevertheless now not been able to launch operations in the country amid an impasse with the Centre over import responsibilities and neighborhood production. While the Centre wants Tesla to set up a base in India and sell locally and export, Musk insists on slashing import duties first. The authorities may additionally keep in mind reducing import duty and offering other sops, but Tesla has to set up a manufacturing factory in the country. Now, four politicians from four non- BJP-dominated states have invited tesla to set up save in their provinces, just days after Musk said he changed into nonetheless facing quite a few challenges with the center.
NOW, WHAT IS MUSK’S ISSUE WITH THE GOVERNMENT?
Tesla’s plan to go into the Indian market has been placed on keep because of 2019 due to the high import taxes on electric-powered vehicles. India levies a 60% import tax on electric-powered automobiles priced at $40000 or less and 100% on those above $40000. In comparison, Tesla motors begin at $44690 in the US, and selling cars in India with 100 percent import taxes could suggest dishing out around 60
lakhs for a car. Now, Musk has over and over tweeted, in search of a cut in import responsibility. In July 2021, Tesla CEO Elon Musk tweeted that he was hoping for a brief tariff alleviation for electric vehicles and that he desires to launch its vehicles soon in India, but Indian import duties are
the highest in the world by means of ways of any large country. A month later, Tesla executives met with authorities officials in a closed-door meeting to even discuss the high import taxes and requested for them to be reduced. The executives argued that it wasn’t to be had for Tesla to do business in India below the modern import duty shape as it would make its vehicles unaffordable in India. But, the Modi government has so far refused to oblige with any form of a rebate. It has, rather, recommended that the US firm should manufacture electric cars in India earlier than any tax concessions are considered. Union Minister Nitin Gadkari even stated that Tesla has a golden opportunity to set up itsmanufacturing facility in India given the country’s thrust on e-vehicles, and the fact that it’s far already sourcing various car additives from Indian automakers.
By : Karthik Birre