New Delhi: The Ministry of Industry Heavy has requested Tesla Major Electric Cars based in the US first starting to produce its iconic electric vehicles in India before each tax concession can be considered, the word government said.
They said that the government did not provide such concessions to the automatic company and benefit the task to Tesla would not send a good signal to other companies that have invested billions of dollars in India.
Tesla demanded reduction in import duties on electric vehicles (EV) in India.
At present, the car imported as a unit that is truly built (CBU) attracts customs from 60 percent to 100 percent, depending on the size and cost of the engine, insurance and shipping costs (CIF) less or above $ 40,000.
In a letter to the Ministry of Road, US companies have stated that the effective import rate of 110 percent in vehicles with customs value above USD 40,000 is a “barrier” on zero-emissions.
This has asked the government to standardize electric car rates up to 40 percent regardless of customs value, and attract additional costs of 10 percent social welfare in electric cars.
Has stated that this change will increase the development of the EV Indian ecosystem and the company will make a significant direct investment in sales, services, and filling infrastructure; And significantly increases the procurement of India for its global operations.
The company has argued that this proposal would not have a negative impact on the Indian automotive market because no OEM India currently produces cars (EV or ICE) at ex-factory prices above $ 40,000 and only 1-2 percent of cars sold in India (EV or ICE) has an ex-factory / customs value above $ 40,000.
Union Minister Nitin Gadkari said Tesla had a golden opportunity to establish its manufacturing facilities in India considering the country’s encouragement on electronic vehicles.
Tesla has contributed various car components from Indian car makers and establishing a base here will be economically worth it, said road and highway transportation.