Tesla Electric Cars: American automaker Tesla is in serious talks with the Indian government about entering India. India is a very large market and all levels of purchases (high, medium, and basic) are significant. However, the Indian government is capitalizing on the importance of its market.
Tesla Electric Cars in India Must Be Manufactures in India
The government will not allow any Tesla electric car that is not “Manufactures In India” to have the same privilege as a Made In India car. The Indian government has recently made this clear once again. Tesla wants to enjoy any preferential import tariffs on the Made In China car premise. T Cars produced in China and then imported into India cannot benefit from tax benefits.
According to reports, the Indian government told Congress recently (Feb 8) that it is impossible to “take India as a market but put jobs in China”. The Indian government has told the lower house of the Indian Parliament that Tesla has not yet applied as per the relevant policies formulated by the government. For this Tesla cannot currently enjoy any concessions.
Tesla company is trying to pressure the Indian government
As the Indian government speaks out again, Tesla is lobbying New Delhi over plans to cut taxes on its products. Tesla believes Indian consumers will not be able to buy its electric car products. However, this may not be entirely true. If Tesla believes Indian consumers cannot afford its electric car products, why lobby to enter the Indian market? Last month, Tesla CEO Elon Musk said his company was working to overcome “many challenges” to make its India debut.
Tesla wants to enter the Indian market but doesn’t want to produce locally. On the other hand, the company plans to produce several models at its Gigafactory in Shanghai, China. On why the Indian government is ambiguous on the issue of providing tax cuts, Mohit Yadav, co-founder of electric vehicle infrastructure company BOLT, said in an interview with reporters earlier that the Indian government should provide subsidies to local electric vehicle manufacturers.
In fact, before that, there was a boom in “Made in India” activities in India. Furthermore, during the novel coronavirus pandemic, all of India witnessed heavy dependence on Chinese manufacturers.
However, the Indian government is unlikely to bow to any pressure. The government has always insisted on Made In India products. Many smartphones and other technologies are now Made In India, at least for the Indian market.