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‘Facing a lot of challenges with government’: Elon Musk on Tesla’s Indian entry

Mumbai: Tesla founder and CEO Elon Musk said that the company is facing a lot of challenges with the Indian government to launch their cars in the country. Elon Musk tweeted this as a reply to a customer.

Tesla had earlier requested the Indian government to relax the import duty on electric vehicles. At present, the import duty is 110% on electric vehicles with customs value above $40,000.  The import tax is 60% on electric vehicles with customs value less than $40,000. The company requested the government to reduce it to 40% irrespective of the customs value and withdraw the social welfare surcharge of 10 per cent on electric cars.

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In 2020, Musk announced plans to open the production of Tesla electric vehicles in India and a subsidiary Tesla India Motors and Energy Private Limited was established in Bengaluru.  Elon Musk had announced the launch of his company’s ‘Model 3’ car in India in the year 2017. The pre-bookings started in 2016 and it was later dropped.

Nitin Gadkari, Union Minister of Road Transport and Highways said that if Tesla assembles and sells it’s vehicles in India , they can reap the benefits of the PLI scheme for automobiles and specifically electric vehicles.


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