Elon Musk And Narendra Modi
The matter seems to be stuck again when Tesla comes to India. The reason for this is tax. Where on one hand the government is not ready to reduce the tax on imported cars. At the same time, Tesla is not agreeing to come to India with the existing tax system. Although no official statement has come out from the Government of India and Tesla in this matter, but what has been revealed by quoting the sources is that Tesla’s team had to return disappointed towards the Government of India.
No commitment on local production
A delegation of Tesla Inc executives in India discussed possible local sourcing of components and incentives from India, but did not give a concrete answer or commit to a proposal to make vehicles in the country. The electric car maker has again started talks with the Indian government after a year-long standoff. However, the automaker has not ruled out the possibility of setting up the plant in the country. Tesla knows that India is a big consumer market, but the company’s officials have not put any of their plans before the government.
Government not ready to change the rules
In fact, the screw is related to the tax, which the Government of India is imposing on imported vehicles. Tesla executives reiterated their concerns about India’s high tariffs on imported cars during this week’s meeting, but the government is unwilling to make any changes to its tax regime for the automaker to set up a base in India. So far no statement has come out from Tesla in this whole. On the other hand, the Ministry of Road Transport and Highways has also not issued any statement.
Last time too
Due to the increasing geopolitical tension between China and America, there is a big crisis in front of the big companies of the world. In such a situation, those companies are looking at India as their new option. In the world’s most populous country, amidst increasing demand for everything from smartphones to electric vehicles, India is inviting international companies to its country and inviting them to set up plants here. Last year, discussions had started between the Government of India and Tesla, but talks could not be made between the two sides. India wanted Tesla to set up and sell its plant in India, while Musk wanted to bring Shanghai-made vehicles to India and was demanding a reduction in import duty, but no decision could be taken.
Talks are also going on with South Karia and Indonesia
According to informed people, Tesla is trying to understand the local policies and incentives for the EV industry before preparing the roadmap for entry in India. Tesla is having several meetings with the ministries of power, road transport and highways and heavy industries. By the way, Tesla is also in talks with South Korea to open the plant. A decision can be taken on this soon. On the other hand, talks with Indonesia have been confirmed, the plant here will produce more than one million cars in a year.