When will the sale of Tesla cars start in India? This question has been around for a long time. Recently, there were reports that there is a standoff between Tesla and India over the possible tax benefits, because the government wants from Tesla the commitment of manufacturing at the local level. Without this, she does not want to pay any tax benefit. Now according to a Bloomberg report, the government wants Tesla to buy local auto components worth $ 500 million to be eligible for exemption from import tax in the country. The report also claimed that Tesla has been given a condition that it can start buying local auto parts at a lower base.
of report according to The Indian government has formally asked Tesla to increase domestic sourcing. However, Tesla has not yet commented on this. Interestingly, Tesla had earlier claimed in August 2021 that it had sourced around $100 million worth of auto parts from India for its electric vehicles.
Tesla is desperate to sell its electric vehicles in India. The company has been lobbying the authorities in New Delhi for almost a year now. She wants to reduce the import duty on vehicles, which the company’s billionaire CEO Elon Musk has told the most in the world.
Tesla plans to import the fully built unit (CBU) model first. But due to the high tax involved, the cost of CBU Tesla cars will be much higher. Tesla is demanding a cut in tax from the government, while the Indian government is not willing to reduce the tax. The government wants Tesla to set up manufacturing plants in the country. He should produce electric cars in India only. But Tesla wants to see the demand for its cars first. She wants to see how her cars get response in India.
This is the reason why there is a standoff between Tesla and the Government of India. Tesla CEO Elon Musk has expressed displeasure over the high tax rate in India. Now this is a new development, according to which Tesla will have to source auto components in India to be eligible for the import duty deduction.