When will Elon Musk's Tesla company launch in India? The government develops import tariff policies that are concessional

When will Elon Musk's Tesla company launch in India? The government develops import tariff policies that are concessional

Soon, Tesla in India? Since the government has finalized the policy of prolonging the concessional import tariff on electric automobiles priced over Rs 30 lakh (about $36,000) for 2-3 years, Elon Musk's Tesla, an American electric vehicle manufacturer, is ready to join the Indian market. Providing form. India wants to use domestic manufacturing to lower the cost of electric automobiles and increase jobs.

Soon, Tesla in India? Since the government has finalized the policy of prolonging the concessional import tariff on electric automobiles priced over Rs 30 lakh (about $36,000) for 2-3 years, Elon Musk's Tesla, an American electric vehicle manufacturer, is ready to join the Indian market. Providing form. India is taking this action in an effort to lower the cost of electric automobiles and increase jobs via domestic production.

According to people familiar with the situation, Tesla may be given a bank guarantee for its investment in constructing an electric car manufacturing in India in return for a reduction in import charges, according to an ET article.

At the moment, India charges 60% import duty on automobiles under $40,000 (about Rs 33 lakh) and 100% tax on cars beyond that amount. Nonetheless, Tesla has said that it would be prepared to spend up to $2 billion if the Indian government were to provide imported electric vehicles a 15% import tax reduction for the first two years of their operation.

The government is thinking of temporarily lowering import duties based on bank guarantees in order to guarantee timely investment and the establishment of local industries. The precise amount of the bank guarantee is yet unknown. If businesses don't meet investment deadlines, they risk having their bank guarantees cashed.

Indian manufacturers are being cautious despite the increased interest in Tesla's possible entrance into the Indian market. There are worries that Tesla would unfairly benefit from its lack of a well-thought-out investment strategy.

Anish Shah, the managing director of Mahindra & Mahindra (M&M), said last month that his organization had informed government representatives that foreign manufacturers of electric vehicles (EVs) had to be encouraged to make investments in India.

"There ought to be fair play for everybody...Investing in India is crucial. Shah was cited as stating at the World Economic Forum in Davos, "What we do is essentially to create a strong industry in India, as opposed to a situation where everything is done outside India, and India just becomes an importer of products." Was. Any particular mention of Tesla.

Already, domestic automakers like M&M and Tata Motors are manufacturing EVs in the country.