The Indian government rejected Tesla CEO Elon Musk's request for tax cuts for imported electric vehicles, saying that the regulations have allowed vehicles that are not fully assembled at lower rates to be imported and produced locally. Vivek Johri, chairman of the Central Committee on Indirect Taxes and Customs at the Ministry of Finance of India, reportedly said on Thursday: "We have conducted a study on whether we need to readjust tariffs, but some domestic production has already started and some investment projects are already operating under the current tariff structure." So it's clear that this doesn't constitute an obstacle. ”
Interface News: Bloomberg reported on February 4 that the Indian government rejected Tesla CEO Elon Musk's request for tax cuts for imported electric vehicles, saying that the regulations have allowed the import of under-fully assembled vehicles at lower rates and assembled and produced locally.
Vivek Johri, chairman of the Central Committee on Indirect Taxes and Customs at the Ministry of Finance of India, reportedly said on Thursday: "We have conducted a study on whether we need to readjust tariffs, but some domestic production has already started and some investment projects are already operating under the current tariff structure." So it's clear that this doesn't constitute an obstacle. ”
The Modi government has been encouraging Tesla to produce locally, but Musk wants India to provide tax breaks that will allow Tesla to prioritize the sale of non-Locally Made Vehicles at competitive prices.
According to a previous report by China Automotive News, the current tariff on imported cars in India is 60%-100%, and the tariff on imported cars priced below 3 million rupees (about $40,000) is 60%, and imported cars above this price are subject to 100% tariffs, which is equivalent to doubling the price. At present, Tesla only has a low-end version of the Model 3 with a base price of less than $40,000, and the other models are in the range of $40,000-120,000. Therefore, Tesla has proposed to the Indian government to cut the import tax on electric vehicles to 40%.
Johri said that tesla has failed to give a specific factory construction and production plan under the premise that the Indian government has proposed to formulate a specific production plan. Earlier this week, india's government budget did not mention any tax breaks for clean energy vehicle imports. However, Maharashtra, the seat of India's financial capital Mumbai, has publicly expressed its support for Tesla's request.
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