US-based EV maker Tesla has reportedly approached the PM Naredndra Modi-led central government, seeking initial tax concessions of the country's customs duties, as per a report from IANS citing a leading publication. The requested relief aims to slash the country's import duties by at least 15 percent for EVs.
At present, India levies a custom duty of 70 percent for cars under $40,000 (Rs 32.5 lakh approx) and 100 percent for cars exceeding the said amount. This appeal, which is said to be under consideration of the government, if given green light, will be applicable to all electric vehicle (EV) manufacturers.
Earlier this year following PM Modi’s visit to the US where he also met Tesla Chief Elon Musk, the EV maker signed a five-year lease for office space in Pune.
Amidst global rivals such as BYD and Great Wall Motors of China facing scrutiny, Tesla's entry into India, the world's third-largest automobile market, is strategically advantageous. As for the above-mentioned Chinese automakers, the duo faced rejection for their individual $1 billion investments in the country due to tightening approval requirements post the 2020 Indo-China border conflict.
Besides the reported discussions of setting up an EV facility in the country, Tesla also has proposed to set up a battery and storage facility in the country recently in September, a Reuters report said.
In the latest developments around the matter, Union Commerce and Industries Minister Piyush Goyal will be meeting Musk during his US visit scheduled between November 13-November 17. It remains to be seen what discussions will be held between the two and if the centre will agree on slashing the import duties initially to facilitate the EV major’s arrival in India.
Stay tuned to TOI Auto for latest updates on the automotive sector and do follow us on our social media handles on Facebook, Instagram, and X.
Discover everything about the automotive world at Times of India.