Tesla asks government for import duty exemption to launch in India

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We’ve always kept you updated about Tesla coming to India. We’ll gladly observe the car maker here but there are a few obstacles that it is encountering to get here in time. Back in February 2017, a tweet from Elon Musk made us hopeful about the organization making its way here. He’d said that Tesla would arrive at India by the end of 2017, sadly that arrangement changed and another tweet simply a month ago, didn’t bring the best of news. When asked about Tesla’s India plans, Musk answered to the tweet expressing “Maybe I’m misinformed, yet I was informed that 30% of parts must be locally sourced and the supply doesn’t yet exist in India to support that”

Clearly he was which is the reason he’s likely asked the people at Tesla to resume converses with the Indian government. Just yesterday, Musk was asked yet again of its plans to come to India and he answered to the tweet saying that the people from Tesla are “In discussions with the government of India asking for temporary relief on import penalties/ restrictions until a local factory is built”

Ofcourse for Tesla needs to value its models competitively in India and the best way to cut costs down is manufacture models locally. Tesla has no manufacturing base in India thus till it builds one, all cars coming to India will come as CBUs (Completely Built Units). Under the current tax bracket, CBUs attract in 100-120% import duty and this means the cost of the cars will go up, making it very costly in India.

However, there is a silver linking here. The Government of India has officially reported its plans of phasing out petrol and diesel autos by 2030 and this is very ambitious, as also difficult. By 2020, the government needs to guarantee that 6 million Indians purchase electric/hybrid cars and that is quite a task at hand as well.

For the time being though, just Mahindra makes electric autos in India and is the only one that exports them as well. Recently, Mahindra welcomed Musk to India, saying that he would love some competition here. With India poised to end up plainly the third-biggest automotive market on the planet, Tesla would without a doubt need a bit of the pie particularly when it doesn’t need to deal with much competition. We hold up to find hear more from Musk or even Tesla on its plans for India

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