Tesla plans to enter the Indian market, where electric vehicles account for less than 1% of annual car sales. Last month, it also called on the Modi government to Reducing Import Tariffs on Tesla Electric Vehicles
A few days after Tesla boss Elon Musk expressed his hope that India would cut taxes on imported electric vehicles, the center responded, and Tesla did not want this: the government ruled out any import tariff cuts. A blow to an electric car manufacturer in the United States.
Krishan Pal Gurjar, who recently joined the cabinet as Minister of Energy and Heavy Industry, said that the center did not propose to promote Tesla’s entry into India. Review by the Ministry of Heavy Industry”.
A week ago, Tesla CEO Elon Musk said on Twitter that he expects “tariffs on electric vehicles will be temporarily reduced.” Musk said that Tesla plans to launch its cars in India soon, but India’s import tariffs are the highest in the country. Coexist peacefully with most big countries! ‘
Tesla’s views on India’s import tariffs have sparked controversy among the country’s automakers. The car manufacturers are divided.
Although Hyundai Motor supports Tesla is pushing for tax cuts, Tata Motors has called on Indian automakers to be treated equally.
Shortly before the launch of its first product in India, the company stated that in addition to tax cuts, the focus should be more on promoting local production.
India currently imposes 60% to 100% tariffs on imported cars. India imposes a 100% import tax on fully imported vehicles with a CIF (value, insurance, and freight) value of more than US$40,000 and a 60% tariff on vehicles with lower amounts.
CEO Musk said in a subsequent tweet that Tesla’s car factory in India is “very likely” to start selling imported cars.
For many years, Musk has been very happy to break into one of the most promising car markets in the world, but he complained that Indian regulations prohibit him from testing imported water first because high tariffs make Tesla cars “expensive.”
Tesla’s goal is to enter the third-largest economy in Asia. Electric vehicles account for less than 1% of its annual car sales, while in China, this ratio is about 5%.
Compared with China, Tesla opened its first factory outside the United States and now dominates the sales of electric vehicles. The weak charging infrastructure and high costs hinder the widespread adoption of electric vehicles in India.
“Unfortunately, the currently available technology means that the production cost of electric vehicles is much higher than that of conventional cars,” Maruti RC Bhargava president said in the company’s annual report on Monday.
“This, coupled with the lack of charging infrastructure, makes it very difficult to sell electric cars to people who can only afford small cars.”
The center may temporarily rule out the possibility of tax cuts, but Gurjar said the government can also take other measures to help automakers.
He said that the government is actively promoting the use of electric vehicles by keeping domestic taxes low, providing incentives through the FAME II program, and helping to establish electric vehicle charging stations to develop the country’s electric vehicle ecosystem.
Tesla announced its entry into India earlier this year and was registered as Tesla Motors India in Karnataka. Elon Musk said, “Tesla is very likely to build a factory in India,” but the promise is that its imported cars first succeed in the country.
Musk said, “Clean energy vehicles are treated the same as diesel or gasoline, which is not fully in line with India’s climate goals.” However, he said: “We hope that the Reducing Import Tariffs on electric vehicles, at least temporarily. We will be very grateful to You.”
When a supporter asked whether Tesla could start local assembly in India, Musk said, “If Tesla can succeed in imported cars, then it is likely to be a factory in India. “
On July 23, a senior government official stated that Tesla had called for Reducing import tariffs. Trade Union Minister Nitin Gadkari recently stated that Tesla has a good opportunity to open in India.