Tesla :The demand for electric vehicles is increasing rapidly in the country. At present the share of electric vehicles in the Indian market is 2.4 percent. But now good news is coming for India. Tesla is going to enter India. Tesla company will set up a plant in Gujarat.
The EV manufacturer is in talks with the government (Gujrat Government) for land to set up its manufacturing plant. Tesla’s manufacturing plant is likely to be set up in Sanand. It has been said in the report that where Tesla’s plant can be set up, there are already car manufacturers like Tata Motors. In such a situation, business in India may be challenging for Tesla. Other Indian car manufacturers like Maruti Suzuki and MG Motor also have plants in Gujarat.
Government’s answer regarding Tesla
Here, Gujarat government spokesperson Hrishikesh Patel says that if Elon Musk comes to Gujarat, he will also get full support from the government. However, talks are still going on and an announcement may be made in a few days. He said that Ford and Tata also have plants in Gujarat, which are being given full support by the state.
Recently, the Central Government had said that no proposal to give tax exemption on import of EVs in the country is being considered. Tesla had sought exemption from import tax from the government to start selling its electric cars in the country. On a question related to subsidy on import tax and value addition to Tesla and other foreign car makers from local components, Minister of State for Commerce and Industry Som Parkash had said that the government has sanctioned Rs 25,938 crore for the automobile and auto component industry. A production-linked incentive scheme was announced with a budgetary allocation of Rs. He said that its objective is to increase manufacturing of products with advanced automotive technology including EV in the country. There is no proposal to provide tax subsidy on import of EV.
Tesla had requested the government to impose 40 percent import tax on EVs. There is a tax of 60 percent to 100 percent on vehicles imported into the country. The government has asked Tesla to set up a manufacturing plant in the country and start manufacturing EVs. To reduce the cost of EV, the company also plans to manufacture batteries in the country.