New Delhi: Tesla Inc.
has written to the Ministry of India who sought a large reduction in import duties on electric vehicles (EVS), a measure he said would increase demand and generate revenue for the government, two sources with knowledge about the problem.
However, the field is likely to face resistance from the government of Prime Minister Narendra Modi who has fought for high import taxes for many industries in an effort to improve local manufacturing.
Other luxury Ahomaker in India has also lobbied the government in the past to reduce taxes on imported cars but have little success due to opposition from rivals with domestic operations.
Tesla, which aims to start sales in India this year, said that in a letter to the leading Ministry and Niti Tanks in the country which cut government tax on imports of electric cars fully assembled to 40% will be more appropriate, according to the sources the.
, It is comparable to the current level of 60% for cars at prices below $ 40,000 and 100% for them above $ 40,000.
“The argument is that on 40% import duty, electric cars can be more affordable but the threshold is still high enough to force the company to produce locally if demand increases,” said one source.
Sources refused to be identified as the letter had not been published.
According to the Tesla’s US website, only one model – Model 3 standard plus models – priced under $ 40,000.
Tesla and Niti Aayog did not respond to comments looking for emails.
The Ministry was written Tesla to include transportation and the ministry of heavy industry, which did not immediately respond to a request for comments.
The Indian market for Premium EVs, indeed for electric cars in general, there is still a lot in times of growth with vehicles that are too expensive for the average consumer and very small charging infrastructure in its place.
Only 5,000 of the 2.4 million cars sold in India last year were electricity and most were priced at under $ 28,000.
Mercedes Benz Daimler began selling EQ EQC luxury in India last year for $ 136,000, and Audi launched three electric SUVs this week with a sticker tag that began around $ 133,000.
While lower tasks will give Tesla a better chance to test the market, the plan to start sales in India does not depend on changes in government policies, the two sources said.
Tesla registered a local company in India in January and has increased local recruitment while also looking for showrooms.
Transportation Minister Nitin Gadkari told Reuters in March that India would be willing to offer incentives to ensure the production costs of Tesla in this country are less than it in China, but only if producing locally.
Tesla Lobbies India for imported taxes sharply at EVS: Reports
