Apprehensive over high duties, Tesla CEO hopes for relaxations on EVs, even if temporary

Commenting on India’s import duties being the highest in the world. Tesla CEO Elon Musk expressed hope for a temporary relief on import duties to be given on EV’s.

In a reply to a Twitter user, Tesla founder Elon Musk commented that the automaker is interested in launching cars in India, but the country’s import duties for electric vehicles (EVs) are “higher than anywhere else.”

As for Electric Vehicles, currently, for complete imports with CIF (Cost, Insurance, and Freight) values exceeding USD 40,000, India imposes 100 percent import duty, while for those with less than the amount, the import duty imposition is 60 percent.

He further added that clean energy vehicles are treated the same as diesel and petrol, which does not seem entirely in line with the climate goals of the country.

Tesla CEO Elon Musk expressed hope for a temporary relief to be given toward import duties on electric vehicles.

On the question of the local assembly of vehicles in India, Musk replied that so long as Tesla can succeed with imported vehicles, then an Indian factory is very likely.

Earlier this year in January, Tesla announced it was entering the Indian market. Tesla India Motors and Energy Pvt Ltd has been registered with the Registrar of Companies in Bengaluru, in the state of Karnataka, India. Recently, the company added Hindi to its infotainment UI.

In context to this, Union Minister Nitin Gadkari made a statement that Tesla would start operations in India by this year, as well as possibly opening a manufacturing plant.

Due to the country’s push towards e-vehicles, Gadkari believes that this will be a golden opportunity for Tesla to open a manufacturing unit in India.

Despite speculation over Tesla’s plans to set up a manufacturing facility in India, it is likely that it will import its electric vehicle for Indian customers in the initial stages.

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