Elon Musk wants import duty cut to start Tesla factory in India
Tesla CEO Elon Musk (Photo by ODD ANDERSEN/AFP via Getty Images)
TESLA Inc Chief Executive Officer Elon Musk on Twitter said that a factory in India was likely if the electric-car maker was successful with imported vehicles.
The company has also recently written to Indian ministries seeking a reduction in import duties on electric vehicles (EVs) in a bid to promote the sales of its electric cars in India, reports said.
While replying to the popular Indian Youtuber Madan Gowri on Twitter, Musk has said that Tesla ‘factory in India is quite likely’ but at the condition that its imported cars first succeed in the country.
In another Tweet, Musk can also be seen hoping for a ‘temporary tariff relief for electric vehicles’ while replying to one of his followers’ tweets.
The billionaire further said that Tesla wants to launch its cars soon in India, but Indian ‘import duties are the highest in the world by far of any large country!’
The US electric vehicle maker aims to begin sales in India this year, as per a letter to ministries and the country’s leading think-tank Niti Aayog that reducing federal taxes on imports of fully assembled electric cars to 40 per cent would be more appropriate, media reports said.
Currently, India imposes 100 per cent import duty on fully imported cars with CIF (Cost, Insurance and Freight) value over $40,000, while 60 per cent duty is imposed on cars that cost less than the amount.
Earlier this year, Tesla registered a local company in southern India. It has also ramped up hiring to administer the Indian operations, reports said.