Tesla's India launch is now on hold.
Tesla wanted a concession on the import duties of imported cars, which is as high as 100%.
Electric car maker Tesla has put their plans to sell cars in India on hold. Tesla was asking the government for tax relief on electric cars imported from China and US. But the Indian government is not ready to offer a tax concession that is as high as 100%.
Union Minister Nitin Gadkari has told Tesla that Tax benefits will only be given if Tesla manufactures cars in India. The discussion between Tesla and the Indian government went on for years, but they were not able to come to an agreement.
The Disagreement between Government and Tesla.
In India, the import duty on vehicles priced more than $40,000 is 100%. Tesla wanted a tax relief on the import duties. Elon Musk has asked the Indian government to not treat electric vehicles the same as diesel or petrol vehicles, as it does not seem entirely consistent with the climate goals of India.
But the government wants Tesla to manufacture cars in India. Tax reliefs won’t be given to cars that are imported from China or US.
Tesla's India launch on hold.
Tesla was aggressively testing its cars on Indian roads and was looking for showroom space in Mumbai, Delhi, and Bengaluru. But now they have abandoned all their plans.
Even the officials who were appointed for Tesla India have gone back to the US.
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