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Elon Musk, the CEO of Tesla, wants to sell cars in India, but the country's import taxes on electric vehicles (EVs) hinder him from doing so. Tesla, according to Reuters, has written to Indian ministries demanding a large reduction in electric vehicle import duties (EVs).

According to ET, the government is willing to discuss decreasing taxes and other incentives for Tesla if the company commits to producing electric vehicles in India.

What's Holding Tesla Back From Launching Cars In India?

Madan Gowri, a YouTuber, tweeted a few days ago “please launch Tesla cars in India ASAP!” 

Elon Musk's response was as follows: “Want to launch Tesla in India, but import duties are the highest in the world by far of any large country. Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India.”

He continued, “But we are hopeful that there will be at least a temporary tariff relief for electric vehicles. That would be much appreciated.”

Musk also stated that EV producers who are willing to import their vehicles will receive no further benefits.

According to ET, the government is willing to explore lowering taxes and other incentives for the EV producer provided the company commits to manufacturing its vehicles in the country.

“We will be open to considering, especially if they will set up a manufacturing place here,” ET was told by a senior official. However, the official made it clear that any decision made on the topic would apply to the entire sector, not just one company.

Is Elon Musk Considering Opening A Factory In India?

Elon Musk responded to a tweet in which he was asked if Tesla was intending to build a factory in India. Musk responded by claiming that creating a factory is only viable if the imported Tesla cars are well received in India.

He remarked in a tweet, “If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely.”

Tesla has also written to Indian ministries, according to Reuters, demanding a large reduction in electric vehicle import taxes (EVs). The letter added that cutting tariffs would “boost demand and create income for the government,” according to reports.

Tesla, which wants to start selling cars in India this year, wrote to ministries and the country's premier think tank, Niti Aayog, suggesting that decreasing federal taxes on fully completed electric cars to 40% would be more appropriate.

(Source: Trak)