Reports suggest that Tesla has requested a meeting between India’s PM and Elon Musk. The main discussion of the meeting is expected to be around the reduction of import duties on cars in the country. Tesla has requested this reduction to understand the demand for their electric vehicles in the Indian market. And this does make a lot of sense. It is probable that they want to understand the market demand before setting up a manufacturing unit in the country.
India’s PM and Elon Musk might meet soon
Tesla planned to start selling its vehicles in India by the end of 2021. But it’s seeming difficult for them to achieve this because of the exorbitant taxes that the government has placed in for the import of vehicles. Therefore, Tesla has requested for this meeting to come to a common ground and make it possible for Tesla to start their business in India. Now there is a roadblock to this request from Tesla, as other car manufacturers are objecting the government. Their argument is if the government listens to Tesla, then it will reduce the incentive to manufacture in the country.
India’s Electric Vehicle taxes
India is levying a tax of 60% on EVs costing $40k or less and 100% for the ones above that. This is why the head of policy for Tesla said that such taxes will make their business unviable. And it is true as such high taxes will make Tesla vehicles super expensive limiting their sales. The response to Tesla’s head of policy’s request is not specifically known. But reports from Reuters suggest that many Indian officials want Tesla to commit to manufacturing in India before seeking any tax breaks.
Even Tata Motors said that giving tax breaks to Tesla would mean compromising on EV manufacturing in the country. In fact, there are a lot of other EV manufacturers so it doesn’t make sense to reduce EV duty specifically for Tesla. But among all these one government official also thinks that reducing taxes for a while could help Tesla establish their business in India which will be beneficial for the country.
What are your thoughts on Tesla’s request for India’s PM and Elon Musk to have a meeting? And do you think Tesla will be able to convince the government? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.