Government Rebuffs Tesla’s Plea To Slash Taxes On Imported Electric Cars

Published August 3, 2021
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The government’s decision to impose high taxes on imported vehicles is driven by the objective to boost local manufacturing in India

Government Rebuffs Tesla’s Plea To Slash Taxes On Imported Electric highlights

In a significant development, the GOI has junked Tesla’s call to slash taxes on fully imported electric cars.

Commenting on the latest news, junior minister Krishan Pal Gurjar told the Parliament, “No such proposal is under consideration in the ministry of heavy industries.”

Government Rebuffs Tesla’s Plea To Slash Taxes On Imported Electric details

Levying high taxes on imported vehicles is driven by the aim to promote local manufacturing, and it seems like that won’t change, at least in the near future.

In India, imported vehicles -- both electric and ICE-powered -- are currently subject to customs duties ranging from 60 to 100 percent. Reports suggest that Tesla had appealed to the government to reduce the same to 40 percent, with Hyundai joining in the chorus.

Government Rebuffs Tesla’s Plea To Slash Taxes On Imported Electric overview

Musk clarified that Tesla would only begin manufacturing cars domestically if the company achieved reasonable success with fully imported models. The latest development could come as a blow for the American carmaker, considering it may not be able to price its offerings competitively.

Tesla’s debut car in India will be the Model 3, expected to launch later this year. The all-electric sedan has been spotted testing here, and it could be priced at around Rs 60 lakh (ex-showroom). If you’re intrigued already, here are five things you have to know about Model 3.