Mumbai, November 7: The Indian government is reportedly working to make the approval process easier and quicker for attracting Elon Musk's Tesla into the country. Tesla is soon to start manufacturing EV in India as it gets all the approvals. According to reports, the government departments have been in conversation with Tesla executives to start a car and battery manufacturing facility in India.
PMO directs the government departments to expedite approvals for Elon Musk's Tesla so it can enter in India soon. According to report, the Indian government officially stated that the meeting's agenda was general policy matters. However, the fast-tracking approvals for Tesla's investment proposal investment in the country were "spelt" out. Skoda Superb 'Fourth Generation' Likely To Launch Soon In India: Check Features, Specifications and Expected Launch Details.
Tesla Entering in India for Establishing Manufacturing:
According to reports, Tesla expressed interest in establishing a car and battery manufacturing facility and bringing the supply chain ecosystem to India. The reports further said that the government department has been asked to resolve any differences with Tesla and facilitate the company to enter India as early as possible.
Tesla Import Duty Structure:
Previously, Tesla requested a 40% import duty on "fully-assembled cars". The company aimed to differentiate electric cars from luxury cars. Reports said that for India's custom duty system, EV and hydrocarbon-powered vehicles are the same for imposing tariffs to promote manufacturing on a domestic level. Tesla showed interest in selling its electric cars in India and establishing a local manufacturing unit. The government officials said, "A new category may be introduced in the import policy to ensure that clean energy-driven vehicles are taxed lower". Ducati Hypermotard 698 Mono Unveiled: Check Design, Specifications and Expected Launch Date in India.
Why did Tesla refuse to enter in India?
According to the reports, Tesla did not enter India earlier due to unresolved import duty reduction negotiations. The government of India insisted on the company establishing local manufacturing, making it a prerequisite for "import duty concessions". The reports further said that the government also asked Tesla to apply for the "product-linked incentive scheme", which allows the manufacturers to get direct subsidies in place of "custom duty concessions."
(The above story first appeared on LatestLY on Nov 07, 2023 10:42 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).