Tesla Seeks A Meeting With Policymakers In India 

By Outlook Planet Desk May 18, 2023

Tesla's last proposal to seek tariff reductions was rejected because the government wants to support domestic production.

Tesla Seeks A Meeting With Policymakers In India 
Tesla intends to introduce automobiles in India.

Tesla, the world's largest electric vehicle manufacturer, has approached the Indian government, an official said on Wednesday, adding that "no duty cut" is currently being considered as the country aims to support domestic manufacturing.

"They (Tesla) have approached us (for a meeting)," he said, adding that the company's earlier proposal of seeking duty cuts was not accepted as the government seeks to promote domestic manufacturing.

"Now, we do not know whether they are coming with the same proposal or bringing another proposal," the official said, requesting anonymity.

The Heavy Industries Ministry, however, is considering "no duty cut" at the moment, according to the official, who recommends such recommendations to its finance counterpart for consideration.

The remarks are significant in light of media reports that Tesla is seeking a meeting with policymakers in this country.

Elon Musk, the creator and CEO of Tesla, stated last year that the business, which had previously sought a reduction in import charges in order to sell its vehicles in India, would not manufacture its goods unless it was first permitted to sell and service its vehicles in the nation.

In response to a user's question on Tesla establishing a manufacturing factory in India, he stated in a tweet, "Tesla will not put a manufacturing plant in any location where we are not allowed first to sell and service cars".

Previously, Union Road Transport and Highways Minister Nitin Gadkari stated that if Tesla was ready to build its electric vehicles in India, there would be "no problem," but the business would not be allowed to import automobiles from China.

Musk stated in August 2021 that Tesla, an American electric vehicle manufacturer, may establish a manufacturing operation in India if it first succeeds with imported automobiles in the nation.

He stated that Tesla intended to introduce automobiles in India, "but import duties are by far the highest in the world of any large country!"

Currently, India charges a 100% import tariff on fully imported cars with a CIF (Cost, Insurance, and Freight) value greater than USD 40,000 and a 70% duty on those costing less.