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Express News Service
NEW DELHI: After sitting on the fence for years, billionaire Elon Musk-promoted Tesla has agreed to set up a manufacturing unit in India to make electric cars for domestic sale as well as export, sources told TNIE. The suggestion was made when senior executives of the US electric car company met Indian government officials on Wednesday.
Tesla’s changed stance on its India plan comes after the Centre refused to accept the company’s request last year to reduce duty on imported cars, including the battery-powered ones. The government had categorically made it clear that Tesla must manufacture in India and not just import from China if it wants to sell its products in the Indian market.
“Tesla did mention about setting up a unit here as many manufacturing companies are looking to diversify beyond China. Their executives did not stress on reducing taxes this time,” said a senior government official. He added the investment details and whereabouts of the proposed facility were not mentioned.
Meanwhile, Union Road Transport Minister Nitin Gadkari, in an event on Wednesday, said Tesla is welcome to manufacture in India and that the company will receive all the subsidies and discounts available for cars that are made in India. He reiterated that Tesla won’t any benefit if they sell imported vehicles in India.
Tesla has been testing the Indian waters for more than two years. It had previously registered an Indian unit by incorporating itself in Bengaluru and was in talks with the Karnataka government for setting up a facility. It even appointed senior executives in India and was reportedly scouting for showrooms. Tesla was expected to launch its first EV in India before the end of year 2021. However, this never happened.Musk had earlier hinted that a Tesla factory to produce cars in India was “quite likely” if it was allowed to import completed cars at lower rates.
Unsuccessful lobbyingFor the major part of 2021, Tesla was lobbying hard for cut in import duty, which ranges from 60% to 100% depending on engine size, cost, insurance & freight value
NEW DELHI: After sitting on the fence for years, billionaire Elon Musk-promoted Tesla has agreed to set up a manufacturing unit in India to make electric cars for domestic sale as well as export, sources told TNIE. The suggestion was made when senior executives of the US electric car company met Indian government officials on Wednesday.
Tesla’s changed stance on its India plan comes after the Centre refused to accept the company’s request last year to reduce duty on imported cars, including the battery-powered ones. The government had categorically made it clear that Tesla must manufacture in India and not just import from China if it wants to sell its products in the Indian market.
“Tesla did mention about setting up a unit here as many manufacturing companies are looking to diversify beyond China. Their executives did not stress on reducing taxes this time,” said a senior government official. He added the investment details and whereabouts of the proposed facility were not mentioned. googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });
Meanwhile, Union Road Transport Minister Nitin Gadkari, in an event on Wednesday, said Tesla is welcome to manufacture in India and that the company will receive all the subsidies and discounts available for cars that are made in India. He reiterated that Tesla won’t any benefit if they sell imported vehicles in India.
Tesla has been testing the Indian waters for more than two years. It had previously registered an Indian unit by incorporating itself in Bengaluru and was in talks with the Karnataka government for setting up a facility. It even appointed senior executives in India and was reportedly scouting for showrooms. Tesla was expected to launch its first EV in India before the end of year 2021. However, this never happened.
Musk had earlier hinted that a Tesla factory to produce cars in India was “quite likely” if it was allowed to import completed cars at lower rates.
Unsuccessful lobbying
For the major part of 2021, Tesla was lobbying hard for cut in import duty, which ranges from 60% to 100% depending on engine size, cost, insurance & freight value
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