Tesla working through 'challenges' with govt to launch products in India: Elon Musk

Tesla working via ‘challenges’ with govt to launch merchandise in India: Elon Musk

Final 12 months, Tesla had sought a discount in import duties on electrical automobiles (EVs) in India

New Delhi: US-based Tesla is working via numerous challenges with the federal government to launch its merchandise in India, the electrical automobile main’s founder and CEO Elon Musk mentioned on Thursday.

Responding to a tweet on the corporate’s plans to launch its merchandise in India, Musk tweeted: “Nonetheless working via numerous challenges with the federal government”.


Final 12 months, Tesla had sought a discount in import duties on electrical automobiles (EVs) in India.

The heavy industries ministry had requested the electrical automobile main to first begin manufacturing its iconic electrical automobiles in India earlier than any tax concessions may be thought-about.

The federal government sources had famous that they weren’t giving such concessions to any auto agency, and giving obligation advantages to Tesla won’t ship a great sign to different firms which have invested billions of {dollars} in India.

At current, vehicles imported as utterly constructed items (CBUs) entice customs obligation, starting from 60 to 100 per cent, relying on the engine measurement and price, insurance coverage and freight (CIF) worth much less or above USD 40,000.


In a letter to the highway ministry, the US agency had final 12 months mentioned that the efficient import tariff of 110 per cent on automobiles with customs worth above USD 40,000 is “prohibitive” to zero-emission automobiles.

The electrical automobile main had requested the federal government to standardise the tariff on electrical vehicles to 40 per cent, regardless of the customs worth, and withdraw the social welfare surcharge of 10 per cent on such automobiles.

It had mentioned that these adjustments would increase the event of the Indian EV ecosystem and the corporate will make vital direct investments in gross sales, service and charging infrastructure; and considerably improve procurement from India for its world operations.


In January 2021, Tesla registered its Indian arm amid indications that the corporate is ready to enter the nation’s car market.

Based on a regulatory submitting, the agency registered Tesla India Motors and Power Pvt Ltd with RoC (Registrar Of Firms) Bangalore.

The corporate has been registered as an unlisted non-public entity with a paid-up capital of Rs 1 lakh.


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