Tesla cars launching in India update: American electric vehicle manufacturer Tesla has considered the implementation of contract construction system under its plans to enter the Indian market. The company has started exploring the possibilities of partnership with local vehicle manufacturers for the manufacture of Tesla Electric Cars in India. The move is part of Tesla’s strategy in which it wants to strengthen its appearance in the Indian Auto Industry. Let’s know about this in detail-
Government of India’s new EV policy and possibilities for Tesla:
(Photo courtesy- social media)
The Government of India has approved the new EV policy to promote the production of electric vehicles. Under this policy, auto companies will have to invest at least ₹ 4,150 crore, and start production by setting up manufacturing plants in India within three years. This has made it more accessible for companies like Tesla to enter the Indian market.
Government’s stand on import duty and local construction:
Tesla demanded a decrease in import duty for the sale of its vehicles in India. The company wanted its vehicles to be considered as electric vehicle, not luxury, so that it could provide relief in import duty. However, the Government of India has clarified that it will not implement any special policy for Tesla. The government has said that Tesla can apply for assistance under the existing production-linked incentive (PLI) scheme, but no special concession will be given for it.
Tesla’s possibility of construction in India
(Photo courtesy- social media)
Under the government’s new EV policy, it has become easier to import Complete Built Unit (CBU) cars in India. The car worth $ 35,000 (about ₹ 30 lakh) will have to pay 15% custom duty for importing in India, which was 70% earlier. However, for this, companies will have to set up a manufacturing plant in India and promote local sourcing. It would be important to establish Tesla’s balance between the plan to implement the contract construction system in India and the government’s policy of self -sufficient India.
If both sides reach an agreement, it can play an important role in the development of the Indian electric vehicle industry. Tesla will have to take steps towards establishing local construction and vendor base to strengthen its presence in India, which can strengthen its hold in the Indian market.
