After Elon Musk's automotive firm Tesla Inc requested for tax concessions to import electric cars into India, the government has turned it down, asking the company to commit to local manufacturing, assembling and sourcing norms if they want to sell cars in India.
A senior finance ministry official conveyed this to ANI on Friday.
“Investments are already coming with the current tariff structure and other foreign companies are selling their electric vehicles with the current tariff structure. The route is open for others also with the current tariff structure,” said the official.
Musk had requested India to lower taxes and to first allow the company to sell at a competitive price vehicles that were built outside. The current import duty for completely built unit (CBU) vehicles ranges from 25 to 100 per cent.
Reacting to the government's response, Congress spokesperson Shama Mohamed tweeted: “The BJP govt rejects Elon Musk's request for tax breaks to import Teslas. PM Modi wants investors to put money into India but the govt continues to put up regulatory roadblocks at every step. It is this hostility which led to foreign investors pulling out $13 Billion in 2021!”
Last month, five Indian states extended offers to Tesla to set up shop in their states. This came after Musk tweeted that his company was facing challenges with the Union government.
India has asked Tesla to consider importing so-called knocked-down units or partially built vehicles, which attract a lower import levy, instead of fully-built units.
Indian roads continue to be dominated by petrol and diesel cars made locally. Electric vehicles account for less than 1 per cent of total sales.
