TEXAS: Government Tells Tesla To Make EVs In India Before Asking For Tax Benefits: Report

TEXAS: The Indian Government has asked
Elon Musk-owned Tesla to start manufacturing its electric vehicles in India
before asking for any tax concessions. Citing government sources, PTI
reported that the Heavy Industries Ministry wants the American EV maker to
begin production in the country first before seeking any tax reliefs from the
Indian government. The sources reportedly said that the Centre is not giving
such benefits to any automaker, and providing such duty concessions to Tesla
will not send a good message to other firms that have invested billions of
dollars in India.

The
California-based maker had previously urged the Indian government to
reduce import duties on EVs. In a letter to the Indian ministries, the company
reportedly lobbied the Centre to reduce import taxes on fully assembled EVs to
40 per cent against 60 per cent for cars priced below $40,000 and 100 per cent
for cars priced above $40,000.

Tesla CEO
Elon Musk wants to bring its electric cars to India, but high import rates are
pushing back its entry. In his earlier tweets, Elon Musk said that Tesla will
consider opening a factory in India, if it finds success with imports.

Earlier,
the government reduced the goods and services tax (GST) on EVs to 5 per cent
from 12 per cent. Moreover, the GST on chargers and charging stations for EVs
has been lowered from 18 per cent to 5 per cent, in a bid to boost
electrification and encourage global EV manufacturers to set up operations in
India.

The Model
3 is the most affordable Tesla and is likely to be the first one to launch in
India

Last
month, Tesla reportedly received approval for homologation of all four models,
which are believed to be Model 3 and Model Y variants. Tesla is already testing
its electric vehicles in India. The Model S has been spotted testing on several
occasions. Interestingly, the Model Y was also recently captured on camera
performing a road test.