New Delhi: In the case of electric vehicles, Tesla’s intentions to enter India, the world’s number company, have suffered a setback. The Government of India has rejected the demand of Tesla Company for exemption on import duty. In fact, Tesla chief Elon Musk wants to sell his imported electric cars in India first. But for this, he was demanding exemption in import duty from the government. There is a 100% tax on imported vehicles in the country. In such a situation, imported cars become twice as expensive. For this reason, to increase his reach in India, he had sought exemption from the government in import tax. But the government has turned down their demand saying that there is already a policy for this in India and no separate exemption will be given for anyone.
What is the side of the government?
In fact, to promote the manufacture or assembly of vehicles in India, the government has imposed a 100% tax on fully imported vehicles. But under this policy, only 15-30 percent duty is levied on importing parts for assembling in India. Auto companies have been allowed by the government to import partially built vehicles at low import duty and assemble them here. This increases investment in India and provides employment to the local people. The government says that there is no need for any change in this duty. Because some domestic companies are already producing electric vehicles and some investment has also come in the existing tariff structure. So there is no obstruction due to duty.
India is continuously promoting the use of electric vehicles. For this reason, the government has invited the world’s largest electric car maker Tesla to start production in India. But Musk initially wants to sell only his imported cars. At the same time, they want the government to reduce the duty on their vehicles import. At the same time, despite the government’s request, Tesla has not yet presented any plans to produce its vehicles in India. In such a situation, the government is not in favor of giving tax exemption to their imported vehicles. But the Indian government has urged Tesla to bring its Knocked Down units (assembly) vehicles to India instead of CBUs (Completely Built Units). By the way, at least 5 states of the country including Maharashtra have invited Tesla to invest and start a business in their state.
