Elon Musk is attempting to exert pressure by lowering Tesla’s import duty, say Government sources
- ByStartupStory | January 13, 2022
Elon Musk’s claims about the “challenges” his company, Tesla, is facing while working with the Indian government to get its cars launched in the country have been dismissed by the government. According to Business Today, Musk is using social media to exert pressure on the government, and Tesla wants the country to lower import duties on its cars without committing to manufacturing in the country.
According to the sources, the government will not give in to pressure tactics. They went on to say that India currently has a PLI scheme for automobiles, particularly electric vehicles, under which Tesla will benefit if it manufactures locally. Tesla will be able to import cars in kit form with zero duty and assemble them in India.
Tesla, which is looking to enter the Indian market, has requested a reduction in import taxes. He told the government that the 100% import tariff on vehicles worth more than $40,000 is ‘prohibitive.’ Because the majority of Tesla models cost more than $40,000, the company would be required to pay the full import tariff. Elon Musk has requested that the government lower the import tariff to 40%.
Elon Musk had earlier in the day, in response to a Twitter user, said, “Still working through a lot of challenges with the government.” Musk was responding to a question about the launch of Tesla cars in India. Import tariffs have been kept high in India in order to boost domestic manufacturing. Tesla had previously been asked by the government to produce its cars in the United States rather than import them.
Nitin Gadkari, the Union Minister for Road Transport and Highways, stated at the India Today Conclave 2021 that Tesla will enter the Indian market soon. “I requested that Tesla officials not build the car in China and sell it in India,” he said. It was something I was thinking about, and I told them about it. Come to India, make your product, sell it, and export it. He had stated, “The government will provide you with all of the assistance and support you require.”
Tesla will be coming to the country soon, according to the minister, and marketing has already begun. Vice Chairman of the Niti Aayog, Rajiv Kumar, has also urged Tesla to produce its cars in India. He believes Tesla should not solely ship its products to India because this will not result in job creation.
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