Tesla Requests Modi Govt to Reduce Import Duty on Electric Cars

US based electronic car company Tesla has requested the Indian government to reduce import duty on electric cars till the company builds its own manufacturing unit in India. The Indian Government is keen to have 100% electronic vehicles by 2030.

Elon Musk’s Request to the Indian Government:

Tesla founder Elon Musk tweeted that he has requested the Indian government to reduce import duty on electric cars that are imported from foreign lands which costs up to $40K. The government taxes 60% percent of the price on fully assembled electric cars. While cars that are above the range of $40K are taxed 100%. Elon has requested to give his company some temporary relief till a local manufacturing factory comes into action.

The company is eyeing on Indian market since two years and has planned to bring its model 3 in 2017. Tesla has yet not decided on setting up its own plant in India as it requires attractive market. The Indian government is trying to woo Tesla by all means. Last year Nitin Gadkari, the transport minister and in 2015, the Prime Minister visited Tesla at Palo Alto, California.

Tesla will see severe competition in the Indian market as other motor companies are also eyeing on Indian market. Mahindra has already launched two e-cars namely e20 plus and e-Verito. Honda has launched the hybrid version of Accord and Toyota has its Camry hybrid. Volvo has also one of its model and all these companies are planning to expand their market given the full support of the Indian government.

Tesla will presently have the disadvantage over these motor companies as their cars will be manufactured in India while Tesla will have to import its cars till its factory doesn’t sets up its foot in India. This will serve as a disadvantage as the rate of made in India cars will be less compared to the imported ones.

Mahindra E2O

Government’s Motive Behind Inviting Tesla for Electric Cars in India:

Modi Government is keen to bring Tesla to India as motor vehicles based on fossil fuels are the biggest reason for pollution. The situation of Delhi is worse and is the most polluted city in the world. There is no good in other parts of the country and that is why the government wants a vehicle that is electronic and causes zero pollution. The Modi government aims to bring 100% electronic vehicles in Indian Market by 2030 which means that no petrol or diesel vehicle will be available in the market by 2030.

Energy Minister Piyush Goyal has already said on this and India is presently the biggest market for solar energy. Introducing to Tesla will be the first step in bringing green energy vehicle in India. Companies like Mahindra are also planning to bring electric vehicles in India. PayTM founder Vijay Shekhar showed his interest in Tesla’s model X by inquiring about it on Twitter.

Indian market will be very beneficial for Tesla and if the government gives some relief on import duty to Tesla, India will be open for electric cars and it will be the first positive and strong step for curbing pollution.

TESLA – Model X