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What problems has Elon Musk run into with the Indian government

  • Elon Musk recently opened up about the challenges of setting up Tesla in India
  • In 2021, Tesla had hoped for a reduction in import duties for its electric vehicles in the country
  • Many Indian leaders have invited the founder to set up manufacturing units in India

Written by:Deeksha
Published: January 16, 2022 06:30:06 New Delhi, Delhi, India

American
electrical automobile giant Tesla has been going through a wave of
unprecedented challenges to launch its products in India, according to founder
and CEO Elon Musk.

The Tesla mogul
had responded to a tweet regarding the company’s plans in India, stating that
he is currently working through many challenges with the government.       

In 2021, Tesla had hoped for a reduction in import duties for its
electric vehicles in the country.

 In response to this plea, the Heavy Industries
Ministry had demanded the company to start manufacturing its vehicles, and a
concession would be considered only after the launch.

Also Read: Tesla faces pressure from activists to shut new Xinjiang showroom

 Sources had justified the decision by stating
that no other automobile companies have been provided with concessions and
other benefits and doing so for Tesla would be biased and partial.  

 Currently, fully built imported cars often have
high customs duty, ranging between 60 and 100%, with regards to cost, engine
size and freight value.

Also Read: Tesla rises above global chip shortage, reports uptick in quarter 4 sales

 Last year, Tesla had written a letter to the
road ministry stating that import tariff on vehicles with customs value above
$40,000 does not apply to zero-emission vehicles.

  Furthermore,
the electric car giant had appealed to the government to standardise its tariff
on electric vehicles, suggesting that the changes would help the evolving industry in
the country. The company stated that it will invest heavily in infrastructure
and sales, procuring significantly from the country for its global operations.

 This month, the company registered itself in the country, peeking a possible launch in the near future.

 Tesla is said to be registered as Tesla India
Motors and Energy Pvt. Ltd according to Registrar of Companies, Bengaluru.

 The firm has been registered with a paid capital Rs.1 lakh.

Responding to the founders’
latest tweet, many leaders from Maharashtra, Punjab, Telangana and West Bengal
have invited Elon Musk to establish manufacturing facilities in the
states.  

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