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Tesla’s Bengaluru debut has run into a ‘key-challenges’ roadblock

Yashika Gupta

Jan 06,2024
2 min read
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Last Time, Tesla had sought a reduction in import duties on electric vehicles in India.

United States-grounded Tesla is working through a lot of challenges with the government to launch its products in India, the electric auto major's author and CEO Elon Musk said on Thursday.

Responding to a tweet on the company's plans to launch its products in India, Mr. Musk said" Still working through a lot of challenges with the government".

Last time, Tesla had sought a reduction in import duties on electric vehicles (EVs) in India.

The Heavy Diligence Ministry had asked the electric auto major to first launch manufacturing its iconic electric vehicles in India before any duty concessions can be considered.

The government sources had noted that they weren't giving similar concessions to any bus establishment, and giving duty benefits to Tesla won't shoot a good signal to other companies that have invested billions of bones in India.

At present, buses imported as fully erected units (CBUs) attract customs duty, ranging from 60 to 100 percent, depending on the machine size and cost, insurance, and freight (CIF) value less or over$.

In a letter to the road ministry, the U.S. establishment had last time said that the effective import tariff of 110 percent on vehicles with customs value above$ is "prohibitive" to zero-emigration vehicles.

The electric auto major had requested the government to regularize the tariff on electric buses to 40, irrespective of the customs value, and withdraw the social weal cargo of 10 on similar vehicles.

It had been said that these changes would boost the development of the Indian EV ecosystem and the company will make significant direct investments in deals, service, and charging structure; and significantly increase procurement from India for its global operations.

In January 2021, Tesla registered its Indian arm amid suggestions that the company is set to enter the country's machine request.

According to a nonsupervisory form, the establishment registered Tesla India Motors and Energy Pvt. Ltd. with RoC (Registrar of Companies) Bangalore.

The company has been registered as an unrecorded private reality with a paid-up capital of ₹ 1 lakh.