Musk pressures India: Tesla wants India to lower tariffs on auto imports

According to the Russian Satellite News Agency reported on the 13th, Tesla (Tesla) company was approved to launch 7 electric vehicles (EVs) in India last year. However, the U.S. electric car maker wants its cars to be lowered first by the Indian side before they are launched in the Indian market.

Elon Musk (Photo by Russian Satellite News Agency)

In response to a tweeter's question about the matter, Tesla Chairman Elon Musk revealed that he was working with the Indian government to tackle "a lot of challenges" in order to sell Tesla vehicles to the South Asian country.

Since 2019, Tesla has been seeking to cut import tariffs from the Indian government, which has tariffs on high-end electric vehicles as high as 110%.

In a letter to India's Ministry of Road Transport and Highways, the U.S. company demanded a standard tariff of 40 percent on electric vehicles.

Under India's current tariff rules, Tesla will have to pay an import tariff of 110 percent on its cheapest Model 3, which sells for about $47,000 (about 300,000 yuan) in the U.S. market.

The Indian government has a production-linked plan for the auto industry, under which any company that produces locally in India can receive huge tariff concessions. If Tesla assembles a car in India, its import kits will receive zero tariff benefits.

The Indian government said on Thursday (13th) that Musk is trying to put pressure on India through social media, "Tesla wants India to reduce tariffs on car imports, but does not commit to production in India." ”

The Indian government is concerned that lowering tariffs will have an impact on the local auto industry. Tata Motors, a company opposed to the move, said concessions to Musk's company would run counter to India's plan to boost domestic electric vehicle manufacturing.

Last month, Musk tweeted that India has one of the highest import tariffs in the world, and that India's tax rate on clean energy vehicles is as heavy as its tax rate on gasoline vehicles, which is not in line with the goals set by India to combat climate change.

(Original title: Musk pressure on India: Tesla wants India to reduce auto import tariffs Source: Global Times)