In a virtual address to a business forum meet at the ongoing G-20 summit in Indonesia, Elon Musk has said that the company is considering developing a low-cost Tesla in India. The Tesla chief executive said he was considering a proposal to make an affordable Tesla model for developing markets like India and Indonesia.
Speaking at G-20 summit, Elon Musk, said, “We do think that making a much more affordable vehicle would make a lot of sense and we should do something.” For people not in the know, India had rejected Elon Musk’s request for a tax rebate on Tesla’s electric cars early this year. The proposal was rejected citing enough participation from global automakers within the existing framework.
Central Board of Indirect Taxes and Customs chairman Vivek Johri, said, “we looked at whether the duties need to be rejigged, but some domestic production is happening and some investments have come in with the current tariff structure. So, it is clear that this is not a hindrance”.
Tesla is yet to present a plan for local manufacturing and procurement from India. The company is in talks with the Indian Government to slash import taxes on electric vehicles before it enters the market. On the other hand, the government is saying that Tesla should produce in India rather than assemble CKD parts.
India has imposed 100 percent duty on fully imported cars with a Cost, Insurance, and Freight (CIF) value of more than $40,000 and 60% on cars with CIF value is less. Previous reports claim that Elon Musk sought a meeting with Prime Minister Narendra Modi to lobby for slashing import duties. On the other hand, the government has no plans to offer any tax benefit to the EV automaker as it could discourage other auto makers.
Source – TelegraphIndia
