TIL Desk/Business/New Delhi/ US-based Tesla is working through a lot of challenges with the government to launch its products in India, the electric car major’s founder and CEO Elon Musk said on Thursday. Responding to a tweet on the company’s plans to launch its products in India, Musk tweeted: “Still working through a lot of challenges with the government.”
Last year, Tesla had sought a reduction in import duties on electric vehicles (EVs) in India. The heavy industries ministry had asked the electric car major to first start manufacturing its iconic electric vehicles in India before any tax concessions can be considered.
The government sources had noted that they were not giving such concessions to any auto firm, and giving duty benefits to Tesla will not send a good signal to other companies that have invested billions of dollars in India.
At present, cars imported as completely built units (CBUs) attract customs duty, ranging from 60 to 100 per cent, depending on the engine size and cost, insurance and freight (CIF) value less or above $40,000.
In a letter to the road ministry, the US firm had last year said that the effective import tariff of 110 per cent on vehicles with customs value above $40,000 is “prohibitive” to zero-emission vehicles.
