Elon Musk’s EV Tesla Announced Plans to Enter India’s Market

According to The Official Leak Tesla Announced Plans to Enter India Market:

Elon Musk's EV Tesla Announced Plans to Enter India's Market

According to The Official Leak Elon Musk’s EV Tesla Announced Plans to Enter India’s Market. For automakers that collaborate with a regional manufacturing facility, the Indian government may be considering lowering the import tax on electric vehicles (EVs). India currently levies a 100% import tax on vehicles costing more than 33 lakhs (roughly $42,000) and a 70% tax on all other vehicles. However, if the new policy is put into practice, electric vehicle manufacturers may be required to pay the Indian government an import tax as low as 15%, according to an exclusive report by Reuters.

This comes after Elon Musk’s electric vehicle startup Tesla announced plans to enter India’s domestic market. According to the official familiar with the situation quoted in the Reuters report, “there is an understanding with Tesla’s proposal and the government is showing interest.”

Tesla and the Indian Ministry of Commerce have not yet responded to the proposal, though. Nirmala Sitharaman, the finance minister, also told Reuters that there is “no proposal in front of me” to lower import taxes on EVs.

The price of electric vehicles on the domestic market will decrease if the Indian government lowers import taxes. Because they will be more competitive with imported models as a result, this may force local automakers to begin producing more EVs.

Other international automakers would be encouraged to enter the third-largest auto market in the world thanks to the lower import taxes. The Indian EV market, which is still in its infancy, would receive a significant boost from this.

Another official was quoted by Reuters as saying that “the lower import taxes could help Tesla sell its full range of models in India, and not just the new car it wants to make locally.”

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For many years, Tesla has attempted to enter the Indian market. The business lobbied the Indian government in 2021 to reduce the import duty on electric vehicles (EVs) from 100%. The government insisted that Tesla commit to local manufacturing first, which caused the negotiations between Tesla and the government to break down.

More recently, Elon Musk’s EV Tesla has informed Indian authorities that it is prepared to establish a local factory there and produce a new EV with a sticker price of about $24,000. The cost difference between this and Tesla’s current entry-level model would be about 25%. The new EV would be used for both export and the Indian market.

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