Tesla Plant in India likely: Elon Musk
Tesla has written to indian authorities seeking a big reduction in import taxes on electric vehicles (EVs), as move which will boost the demand of electric cars and generate revenue for the government, according to sources. Reportedly, tesla has wrote to transport and heavy industries ministries, which has responded yet. tesla is aiming to begin sales in india from this year.
In its letter, EV car producer said to the country’s leading think-tank niti aayog and ministries that slashing federal taxes on imported cars like fully assembled electric cars to 40% will be more appropriate, according to the sources. tesla view refers to current rates of 60% for cars which are priced below $40,000 and 100% for cars above $40,000. According to U.S. website of tesla , only one model, named Standard Range Plus is priced below $40,000.
In the past, other luxury carmakers in india have also lobbied the central government to cut down taxes on imported cars but had a little success due to rivals' opposition with domestic operations. However, Tesla's move is likely to data-face denial from prime minister Narendra Modi’s administration which has successfully imposed high import taxes on many industries to boost local manufacturing.