India turned down the demand Elon Musk‘s Tesla For a tax break on imports of electric cars, it said the rules already allow partially manufactured vehicles to be brought in and assembled locally at a lower levy.
Vivek Johri, chairman of the Central Board of Indirect Taxes and Customs, said, “We have seen whether there is a need to re-add the duties, but some domestic production is taking place and some investments have come with the existing tariff structure.” Interview Thursday.
“So, it’s clear that this is not an obstacle.”
Prime Minister Narendra ModiThe U.S. government has encouraged Tesla to produce locally, while Musk wants India to reduce taxes on imported electric vehicles by 100 percent so that the company can first sell vehicles manufactured elsewhere at competitive prices. However, it levies an import duty of between 15-30% on parts sent for assembly in the country.
Johri said Tesla has not yet introduced plans for local manufacturing and procurement from India, even after the government asked for it, Johri said. The Union Budget earlier this week did not mention any tax breaks for clean but imported vehicles, even though the western state of Maharashtra – home to the financial capital Mumbai – publicly supported Tesla’s demands.
Musk said last month that the chief ministers of at least five Indian states have invited Tesla to set up shop in their provinces, with the US electric-vehicle pioneer still facing a lot of challenges with the central government.
India has asked Tesla to consider importing so-called knock-down units or partially manufactured vehicles, which attract lower import duties, instead of fully manufactured units.
Johri said Tesla should follow domestic companies such as Mahindra & Mahindra Ltd and Tata Motors, which are investing in local capacity building for electric vehicles. “Some others are importing completely manufactured units. That road is open,” he said.
Tesla is also up against the likes of Mercedes-Benz, which will launch the locally assembled EQS – the electric version of its flagship S-Class sedan – in India by the fourth quarter of this year. Indian roads are still dominated by affordable, petrol and diesel-powered cars made by local units of Hyundai Motor and Suzuki Motor, with electric vehicles accounting for less than 1% of the total sales, which are for EV-makers. Underlines a great opportunity. Second most populous country in the world.
Tesla first revealed its definite intention to enter India in early 2019, but Musk said local regulations prevent them from testing the waters with first imports, as the high tariffs would make Tesla cars “unbearable”. Huh.
In October, Union Minister Nitin Gadkari said he had asked Tesla to refrain from selling China-made cars in the country, and urged the automaker to manufacture, sell and export vehicles from a local factory.
“Some investment has already come with the current tariff structure. So why can’t others also come?” said the jeweler. “There are also other foreign brands that are being sold in the country with the existing tariff structure.”
Vivek Johri, chairman of the Central Board of Indirect Taxes and Customs, said, “We have seen whether there is a need to re-add the duties, but some domestic production is taking place and some investments have come with the existing tariff structure.” Interview Thursday.
“So, it’s clear that this is not an obstacle.”
Prime Minister Narendra ModiThe U.S. government has encouraged Tesla to produce locally, while Musk wants India to reduce taxes on imported electric vehicles by 100 percent so that the company can first sell vehicles manufactured elsewhere at competitive prices. However, it levies an import duty of between 15-30% on parts sent for assembly in the country.
Johri said Tesla has not yet introduced plans for local manufacturing and procurement from India, even after the government asked for it, Johri said. The Union Budget earlier this week did not mention any tax breaks for clean but imported vehicles, even though the western state of Maharashtra – home to the financial capital Mumbai – publicly supported Tesla’s demands.
Musk said last month that the chief ministers of at least five Indian states have invited Tesla to set up shop in their provinces, with the US electric-vehicle pioneer still facing a lot of challenges with the central government.
India has asked Tesla to consider importing so-called knock-down units or partially manufactured vehicles, which attract lower import duties, instead of fully manufactured units.
Johri said Tesla should follow domestic companies such as Mahindra & Mahindra Ltd and Tata Motors, which are investing in local capacity building for electric vehicles. “Some others are importing completely manufactured units. That road is open,” he said.
Tesla is also up against the likes of Mercedes-Benz, which will launch the locally assembled EQS – the electric version of its flagship S-Class sedan – in India by the fourth quarter of this year. Indian roads are still dominated by affordable, petrol and diesel-powered cars made by local units of Hyundai Motor and Suzuki Motor, with electric vehicles accounting for less than 1% of the total sales, which are for EV-makers. Underlines a great opportunity. Second most populous country in the world.
Tesla first revealed its definite intention to enter India in early 2019, but Musk said local regulations prevent them from testing the waters with first imports, as the high tariffs would make Tesla cars “unbearable”. Huh.
In October, Union Minister Nitin Gadkari said he had asked Tesla to refrain from selling China-made cars in the country, and urged the automaker to manufacture, sell and export vehicles from a local factory.
“Some investment has already come with the current tariff structure. So why can’t others also come?” said the jeweler. “There are also other foreign brands that are being sold in the country with the existing tariff structure.”
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