Tesla will not enter India for the time being, plans averted due to lack of talk about duty on EV imports

Tesla will not enter India for the time being

Tesla was demanding to reduce the import duty in India, while the Indian government had proposed Tesla to start production in India instead of cutting the duty. Tesla was currently looking for a showroom location in India, which has now been put on hold.

Tesla has postponed its entry plan in India for the time being. Actually the company was trying to get some exemption in import duty in India, although the Indian government has already made it clear that Tesla (Tesla) Before getting exemption on import duty in India, focus on the production of cars in the country itself. Reuters has written in a news quoting sources that for this reason the company has put its entry plans in India on hold for the time being. Government of India Electric Vehicle in the country ( Electric Vehicle) is emphasizing on the production. Although Tesla is looking to sell imported cars in India at an early stage and is demanding a duty exemption on it, Elon Musk has on several occasions in the past described the duty in India as too high. Recently Union Minister Nitin Gadkari (Nitin Gadkari) had clearly said that Musk should come to India and produce EV. Production in China and sale in India will not be possible.

what is the matter

Tesla has been trying to launch its cars in India for a long time. However, in the initial phase, the company wanted to focus on selling imported cars by setting up showrooms in India. For this, the company’s plan was to sell cars produced in America or China in India. The company was trying to get exemption in duty. Which Tesla has told the highest rate in the world. However, at present, the full emphasis of the Government of India is on producing it in the country itself. Because of this, the government offered the company that instead of cutting the duty, they should first produce cars in the country itself. In the last one year, both the parties were talking about this, Tesla had set the deadline of February 1 to decide on the entry in India, in fact the company was keeping an eye on the budget proposals, the results according to the mind in the budget. After not getting it, the company has postponed the decision of entry, according to sources, the company is looking for showrooms and other properties related to sale in the country, which has now been stopped. At the same time, a new position has been given to the team handling the responsibility of business in the country. Earlier in January, Elon Musk said that talks with the government are still going on.

What is the side of Government of India

At present, there has been no reaction from the government or the company on the postponement of Tesla’s plan. However, only last month, Nitin Gadkari made the government’s stand clear. Nitin Gadkari had said that he welcomes Musk to the country, invites him to manufacture Tesla in the country, but production in China and sales in India cannot go like this. India is currently increasing its emphasis on electric vehicles, Nitin Gadkari has already said that by the end of this year, the number of EVs in the country will increase to 40 lakh and in the next 3 years this number will reach 30 million. The car market is growing slowly and currently Tata Motors is in control of this market, in the March quarter, the company has sold more than 9 thousand EVs. At the same time, in January itself, Mercedes-Benz announced that it would start the assembly plant of EV in India.