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Tesla struggles to enter India’s EV market as finance ministry upheld “no-duty-waiver”

The Indian finance ministry has stated that it is not contemplating any custom duty waiver for the Elon Musk-owned firm, making the entry of Tesla into the Indian market more difficult
PrashantPrashant14-Jul-23 8:47 AM
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Tesla struggles to enter India’s EV market as finance ministry upheld “no-duty-waiver”

Tesla suffered a significant blow on Thursday when the Indian finance ministry said that it is not planning to waive any customs duties for the Elon Musk-owned

EV

business. 


According to Sanjay Malhotra, India's tax secretary, "Any duty waiver for Tesla is not under active consideration of the Department of Revenue, as of now." Following Musk's assertion that Prime Minister Narendra Modi had asked his business to make large investments in India, the finance ministry issued a response. 


Malhotra's remarks are significant because the producer of electric vehicles previously requested remission of customs duties in order to bring Tesla automobiles into India. The negotiations to create a foothold in the third-largest economy in Asia fell down, however, because India had already rejected Tesla's proposal. It should be remembered that India taxes electric vehicles at 100% import duty. 


One of the most valuable manufacturers in the world, Tesla, was recently in the headlines for talking to the Indian government about opening manufacturing units. According to a story in The Times of India, Tesla was looking at setting up a supply chain for electronics and

car

parts in India. 


With pricing starting at $24,400, the new facility is anticipated to have an annual manufacturing capacity of 500,000 electric vehicles. Additionally, Tesla plans to base its EVs in India before shipping them to the Indo-Pacific area. This will assist the EV manufacturer in lessening its reliance on China for its supply chain. 

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