If the import is successful, Tesla will set up a factory locally

Staff Writer

Tesla The first model will be launched in India this year, and the first batch of vehicles will come to our country as a CBU (fully built unit). Although CEO Elon Musk has expressed interest in local manufacturing, he now says on Twitter that if Tesla succeeds in importing cars, it is likely to set up a factory in India. This is a big challenge.

  • Tesla aims to start selling Model 3 in India this year
  • The company is seeking to reduce import tariffs on electric vehicles
  • Model 3 sells for about 6 million rupees in India

Tesla’s manufacturing plan in India-what are the obstacles?

According to the latest report ReutersTwo people familiar with the matter, who asked not to be named, disclosed that Tesla recently wrote to various departments in India requesting a substantial reduction in import tariffs imposed on electric vehicles. However, Tesla’s call is likely to be rejected by the central government, especially because it advocates imposing high import taxes on many industries to promote local manufacturing.

According to sources, Tesla stated in a letter to various ministries and commissions and national leading think tank NITI Aayog that it would be more appropriate to reduce the import central tax on fully assembled electric vehicles to 40%. Currently, the import tariff for cars priced below 40,000 US dollars is 60%, and for cars priced higher than 40,000 US dollars, it is 100%.

One of the sources said: “There are reasons to believe that electric vehicles can become more affordable after imposing a 40% import tariff, but if demand picks up, the threshold is still high enough to force the company to produce locally.”

According to Tesla’s US website, the company has only one model that sells for less than $40,000, the Model 3 Standard Range Plus.Even so, the Tesla Model 3 The estimated cost in India is about Rs 6 million (ex-showroom).Other luxury car manufacturers, such as Benz, Jaguar and Audi A luxury electric car with a retail price of more than Rs 1 crore in India. If there is no tax reduction, the cost of other models in the Tesla series may be the same. The luxury electric vehicle market and electric vehicles are still in their infancy in India, with few buyers and few charging infrastructures.

In response to a tweet about Tesla’s launch in India, Musk said: “We want to do this, but the import tariffs are by far the highest of any major country in the world!” He further added that even if the government Ironically, “In addition, the treatment of clean energy vehicles is the same as diesel or gasoline, which does not seem to be completely consistent with India’s climate goals.”

This is not the first time India’s luxury car manufacturers have lobbied the government to reduce taxes on imported cars, but it has also had little effect, mainly due to opposition from domestic business competitors.

Tesla India launch plan

Although lower taxes will certainly help Tesla’s initial business case, the company’s plan to start sales in India does not depend on changes in government policy.In early January this year, Tesla officially Registered office in Bangalore As Tesla’s Indian Auto and Energy Pvt. Limited company. The company has been hiring recently to build its Indian team before the official launch of its first model in India.

In fact, the Tesla Model 3 has Spying test on our road On multiple occasions. Model 3 has two configurations of single motor and dual motor overseas, but it remains to be seen which version of Model 3 will be brought to India.

See also:

Tesla Model X India review, test drive

Tesla abandoned its Model S Plaid+ plan

2019 Tesla Model 3 performance evaluation, test drive

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