Indian government is ready to agree with Tesla’s request but with one condition


With the arrival of Tesla imminent in India, expectations are that the entry-level Model 3 will be the electric car giant’s maiden product to be launched here. Now, Tesla is reportedly planning to bring the Model 3 to India in the coming months for testing and ARAI approvals.

While the Tesla Model 3 will reach India for testing and ARAI approvals by July-August, the company has commenced the backend operations to get the electric sedan ready for sale before the end of 2021, reported CNBC-TV18.

However, the company is still trying to get the Indian government to lower the import duties for it to be more accessible to the Indian market.

As per new updates, the central government has said it may consider lowering import duty and other incentives for Tesla, which is expected to soon start selling its electric vehicles in India. The development comes days after Tesla CEO Elon Musk raised concern over high import duties charged by the country.

However, the consideration will only be taken up when if the company decided to manufacture its cars in the country, according to a senior government official quoted in an ET report. Tesla had approached the government earlier to seek a reduction on its cars, adding that they should be treated as electric vehicles and not luxury automobiles.

“We will be open to consider, especially if they will set up a manufacturing place here,” the senior official told ET. The official, however, made it clear that any decision on the matter will apply to the entire sector and not just a particular company.

The government has announced multiple incentives in the past for companies that produce electric vehicles in the country. One of the moves, for instance, is the reduction of goods and services tax (GST) on electric vehicles from 12 percent to 5 percent.

The tax on chargers and charging stations for electric vehicles was also reduced to 5 percent from 18 percent.