Union government of India declines tailor-made incentives for Tesla, states may offer concessions: Report
Tesla is not being considered for tailor-made incentives by the Indian government, but individual states have the freedom to provide concessions to the company, reported PTI.
PremiumTesla, the US-based electric car maker, is currently not being considered for tailor-made incentives by the union government, reported PTI. However, a report from PTI indicates that individual states have the freedom to provide concessions to the company.
Furthermore, Tesla has expressed a strong interest in India and is exploring the possibility of establishing a comprehensive supply chain in the future.
During their visit to the country last month, representatives from the firms engaged in meetings with different government departments, such as the commerce and industry ministry.
As per PTI, one official source emphasized that imports are not the favored approach from their perspective. They highlighted that the company has ambitious plans for establishing comprehensive supply chains.
When inquired about providing incentives to the firms, the officials clarified that currently, the government has no plans to offer specific incentives. However, they mentioned that individual states have the autonomy to compete with each other and potentially provide concessions.
Back in 2021, the US-based electric car manufacturer had requested a reduction in import duties imposed on electric vehicles (EVs) in India.
Currently, imported cars that are fully assembled units (CBUs) are subject to customs duties ranging from 60 percent to 100 percent. The specific duty rate is determined based on factors such as engine size and the cost, insurance, and freight (CIF) value, which may be below or above USD 40,000.
To recall, Tesla CEO Elon Musk's private jet also landed in China's capital city Beijing last month, in what is being marked as the billionaire's first visit in three years to the east Asian country. Elon Musk is likely to discuss the automated-driving technology that Tesla is seeking to introduce in China with the Chinese Premiere Li Qiang.
Elon Musk is also slated to visit the tesla factory in Shanghai, Bloomberg reported.
China welcomed Elon Musk and said, "China welcomes Mr. Musk and other leaders from the business community to have a better understanding of China and promote mutually beneficial cooperation," Ministry of Foreign Affairs spokeswoman Mao Ning said last month in Beijing.
“We would like to see foreign investors operating in China, exploring the Chinese market and sharing in the dividends of the development of China," she added.
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