Elon Musk to talks with India’s PM to discuss benefits in import duties

Tesla stopped considering selling its vehicles in India due to the high import duty restrictions by the Indian Government. The company has already tried to put its foot in India but the Indian Government has its conditions. Now, Tesla again making efforts to urge the Indian officials to setback on Import duties. In this regard, Tesla CEO Elon Musk is changing up a meeting with Indian Prime Minister Narendra Modi and discuss the mutual benefits.

Tesla's Elon Musk to meet with India's Prime Minister to discuss duty  reductions
Image credits- Teslarati

Indian officials always have been prioritizing the domestic manufacturers and blocked the foreign companies from entering the Indian market. For several years, Tesla tried to enter the market but the heavy import taxes placed by the Government made the company prevent importing their vehicles to India. This has been a strong gridlock for Tesla as it should double the car prices when they are subjected to these import taxes.

According to the report from Reuters, Tesla is working with Indian government officials to figure out the mutual benefits and plans in rolling back the duties, it seemed some politicians have supported the idea. With this meeting, the Indian Government and Tesla could form a business relationship and a way for the company to enter into the Indian market. Though there is a huge craze for the electric car company, Tesla still has its problems entering the market.

Earlier this month, On October 8th, India’s transport minister Nitin Gadkari told Tesla that the company cannot sell the vehicles in the country which are manufactured In China. But he urged Tesla to start their company in India, Make their vehicles in India and sell in India and export them to India. He also assured that the company will get all the economical support from the country.

Indian EV market

As India’s electric market is still in its infancy, the company is not ready to make a billion-dollar risk to start a factory in India. For instance, Tesla made around 5,68,000 electric cars around 2017 and 2020, two-thirds of it were sold in the US while Indians bought fewer than 5,000 electric four-wheelers in 2019-20. With this situation, no wonder company thinks about their fate in India.

Recently, On Thursday, Niti Aayog Vice Chairman Rajiv Kumar also urged just the same Nitin Gadkari did the last time. Rajiv Kumar asked Tesla to manufacture its iconic electric cars in India and India will assure the company that it will get all the benefits it needs from India. Nitin Kumar further said Tesla should not just export cars to India as it won’t create any employment opportunities in the country.

It looks like the Indian Government has open hands to receive the company if it decides to start its manufacturing in India. Since Indians are also enthusiastic about electric vehicles and if the price of the vehicle meets the needs of the people, Tesla will have definite growth within India with all the support it gets.