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
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.
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.
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.