India rejected Tesla Elon Musk’s request for tax breaks to import electric cars, said the rules have allowed carrying vehicles that were built in part and assembled locally in lower levies.
“We see whether the tasks need to be reset, but some domestic production is happening and some investments have come up with the current tariff structure,” Vivek Johri, Chairperson of the Indirect Customs and Customs Council, said in a Thursday interview .
“So, it’s clear that this is not an obstacle.” Prime Minister Narendra Modi has encouraged Tesla to produce locally, while Musk wants India to reduce taxes – as high as 100% in imported EV – to enable companies to sell competitive vehicles.
However, he collected import duties between 15-30% in parts sent for assembly in this country.
Tesla has not presented a local manufacturing and procurement plan from India, even after the government asked for it, said Johri.
Union budget earlier this week did not mention the tax sentence for vehicles that were cleaner but imported, even though the western state of Maharashtra – home for Mumbai’s financial capital – demanded Tesla supported by the public.
The chairman of the minister of at least five Indian countries has invited Tesla to establish a store in their province after Musk said last month Pioneer US electric vehicles still faced many challenges with the central government.
India has asked Tesla to consider importing unconscious units or vehicles built in part, which attracts lower import retribution, instead of the fully built unit.
Tesla must follow the leadership of domestic companies such as Mahindra & Mahindra Ltd.
And Tata Motors, who invest in building local capacity for electric vehicles, said Johri.
“There are others importing the unit fully built.
The route is open,” he said.
Tesla also opposes people like Mercedes-Benz, who will launch the EQS assembled locally – the electric version of the reliable class S sedan – in India in the fourth quarter of this year.
Indian roads are still dominated by cheap cars, gasoline and diesel made by the local Hyundai motorbike unit and Suzuki motorbike, with electric vehicles counting less than 1% of total sales, underlining a great opportunity for EV makers on the Internet the second most populous nation in the world .
Tesla first revealed the intention that would definitely enter India in early 2019, but Musk said local rules would forbid it from testing the waters first with imports, because the high task of making Tesla cars “was not affordable.” In October, Union Minister Nitin Gadkari said he had asked Tesla to avoid selling Chinese cars in the country, and urged car makers to produce, sell and export vehicles from local factories.
“Some investments have entered the current tariff structure.
So why can’t others enter?” Johri said.
“There are other foreign brands that are also sold in this country with current tariff structures.”