Tesla Needs to Fulfill This Condition to Get reduction in Import Tax

The world’s largest electric vehicle (EV) maker Tesla has planned to set up a factory in India. However, for this the company wants exemption in import duty. Import duty for Tesla can be reduced by the Central Government if it fulfills the condition of local manufacturing and sourcing. There is a 100 percent import tax on the import of electric cars worth more than $40,000 in the country.

The government has indicated that EV Manufacturers will have to locally manufacture vehicles for sale in the country instead of importing them in exchange for exemption from import duty. According to a media report, the government is considering reducing import tax for EV companies like Tesla. However, for this, these companies will have to give assurance regarding local manufacturing and sourcing. For the last few quarters, Tesla CEO, Elon Musk has been emphasizing on increasing production. The company plans to buy components worth $1.7-1.9 billion from India. Recently Trade Minister Piyush Goyal had said, “Last year Tesla had purchased components worth about one billion dollars from the country. I have a list of companies that have supplied components to Tesla. This year Tesla’s target is 1.7- To purchase components worth $1.9 billion.”

Senior executives of the company had also held a meeting with Goyal about the plan to set up a factory in the country. The price of EV manufactured in this factory will be around $24,000. With this, along with the sale of EVs in the country, it will also be exported. company Tesla India Motor and Energy, the country’s unit, has taken an office space on lease in Viman Nagar, Pune in Maharashtra. Tesla had registered its subsidiary in Bengaluru about two years ago. However, the company has been late in starting business in the country. The annual capacity of its factory can be around five lakh units.

Tesla had registered its subsidiary in Bengaluru about two years ago. However, there has been a lot of delay in the company starting business in the country. The annual capacity of the company’s factory can be around five lakh units. Prices of Tesla’s electric cars made in India can start from Rs 20 lakh. This company led by billionaire Elon Musk also plans to make the country a base for exports.