Tesla Inc Writes To Government Seeking Reduction In Import Duties For Full Assembled Electric Cars

Elon Musk-led electric vehicle (EV) making behemoth, Tesla Inc is said to have written to the Government seeking a significant reduction in the import duties on EVs, reports The Economic Times.

Other than United States (US)-based Tesla Inc, several other luxury automakers in India have also lobbied the Government in the past to lower the import duties for cars. However, they have only gotten limited success due to resistance and opposition from the rivals with domestic manufacturing operations.

In a letter written to Indian ministries and the Government's apex policy think tank NITI Aayog, Tesla Inc is said to have suggested that slashing the import duty on fully electric cars to 40 per cent would be more appropriate. The ministries that Tesla wrote include the road transport and heavy industries ministries.

Tesla registered an Indian unit in January this year and has since ramped up local hiring. The company is also said to be scouting for local showroom space and aims to begin sales in the country this year itself.

Earlier in March, Union Road Transport and Highways Minister Nitin Gadkari said that the Government would be willing to offer incentives to make Tesla's production cost less than that in China, but only if it manufactures locally.