Tesla CEO Elon Musk

Elon Musk Opens Up About Launching Tesla Cars In India

354 0

Tesla is gearing up to begin sales in India, and the company wrote a letter to ministries and government agency NITI Aayog. According to Tesla, the federal taxes on imports of fully assembled electric cars need to be reduced by 40 percent.

Tesla is planning to set up a factory in India, provided it garners success with imported vehicles, the company’s chief executive Elon Musk wrote on Twitter. Before this tweet, the company urged Indian ministries to reduce import duties on electric vehicles. This piece of information comes from two sources familiar with the matter.

Tesla’s pitch to reduce duties could face resistance from the administration of India’s Prime Minister Narendra Modi. The administration has vigorously supported high import taxes for several industries to encourage local manufacturing.

RELATED: SpaceX Founder Elon Musk Warns Not To Invest Life Savings In Cryptocurrency

“We want to do so, but import duties are the highest in the world by far of any large country,” Musk pointed out while replying to a tweet about launching Tesla cars in India. “But we are hopeful that there will be at least a temporary tariff relief for electric vehicles,” he added.

The current rate for cars priced below $40,000 is 60 percent, and 100 percent for those above $40,000. “The argument is that at 40% import duty, electric cars can become more affordable but the threshold is still high enough to compel companies to manufacture locally if demand picks up,” one source said.

The Model 3 Standard Range Plus is the only Tesla car with a $40,000 price tag, according to the company’s U.S. website. When it comes to premium EVs, the Indian market is still in its infancy. Vehicles are usually steeply priced, and there is a lack of charging infrastructure.

RELATED: Tesla CEO Elon Musk Makes A Snide Comment About Phone Makers Venturing Into EV Segment

Carmakers sold 2.4 million cars in the country last year. Just 5,000 of those cars were electric and most were priced at $28,000, according to NDTV. Tesla’s plan to begin sales in India does not depend on a change in government policy,

Vinay Patel

Vinay is a proactive writer with over 8 years of experience in writing original and high-quality content.

Related Post

Leave a comment

Your email address will not be published. Required fields are marked *