No duty waivers for Tesla, Revenue Secretary Sanjay Malhotra

India’s Finance Ministry on Thursday clears the doubt of any tax waivers for U.S automaker Tesla, stated Revenue Secretary Sanjay Malhotra.

Elon Musk, the CEO of Tesla, stated last month that Prime Minister Narendra M odi was pushing the automaker to make a “significant investment” in the nation and that an announcement was expected soon.

 

” As of now, No duty waiver for Tesla is under active consideration of the Department of Revenue,” Malhotra added to the statement.

The Indian government has previously rejected the American automaker’s requests for customs duty waivers for the import of its electric vehicles.

Also, as per industry experts, it seems impossible for Tesla’s entry-level model to be sold for less than Rs 20 lakh. The base variant of the Tesla Model 3, which is the least expensive Tesla model currently on the market, is priced at roughly more than Rs 30 lakh. Tesla prices are essentially the same all over the world. The price to import this model into India will be more than Rs 60 lakh. Electric vehicles costing more than $40,000 are subject to a 100% import tax in India.

Recent difficulties in China have given Tesla reason to consider and possibly set up a manufacturing base in India. Before a Tesla facility is built in India, there are preliminary discussions taking place between the Indian government and Tesla.

 

According to Prabhu Ram head of the Industry Intelligence Group at CyberMedia Research, Number of factors, including potentially appealing policy incentives, Tesla’s capacity to achieve supply chain and cost efficiencies, and the company’s ability to effectively leverage local manufacturing, will determine whether or not a Tesla is available in India for as little as Rs 20 lakh. All in all, Tesla’s business plan will determine pricing. The auto industry has fierce competition. While policy incentives could give Tesla a competitive edge, incumbents in the automotive industry would be encouraged to increase their investments and expand their EV portfolio.