Tesla request to the government of India to reduce tax on the import of EV has been met by stiff opposition.
Krishan Pal Gurjar, a junior minister in the BJP-led government Said :
“No such proposal is under consideration in the Ministry of Heavy Industries.”
Tesla has officially registered itself in India and also set up an office.
The Tesla is expect to enter the Indian market by the end of 2021 with the Model 3.
Tesla will be brought in as a CBU (completely built-up) unit and under the current import tax laws, it will be taxed 100%.
The Tesla had request the government to put the EV in the lower 40% tax bracket, so that its vehicles could be competitively price in India and consequently, more widely adopted.
Also Tesla’s request was back up by Hyundai.
Elon Musk had previously reveale that following the successful debut of Tesla vehicles, the next logical step would be to set up a gigafactory battery and vehicle manufacturing unit in India.
Which would further help reduce the cost of its vehicles here.
Government’s latest stance on the reduction in import duty, Tesla could choose to change its point of view.
While the Tesla hasn’t said anything about this latest development and could changeits timelines to enter the Indian market.
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