If Tesla wants tax concession, they should be ‘vocal for local’: Govt official

Through September of last year, Tesla executives were photographed driving a red Tesla Model 3 automobile in the national capital’s Ministry of Road Transport and Highways building.

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Tesla Inc, an American electric car and sustainable energy firm, is welcome in India if they adhere to domestic production, assembly, and sourcing standards, according to a top finance ministry official.

“If Tesla or other firms need a concessional tax rate structure for electrical vehicles, they will have to commit to do some local manufacturing, assembling, and sourcing,” the official said to ANI.

According to a finance ministry official, investments are already flowing in under the present tariff framework, while other foreign businesses are selling their electric vehicles under the current tariff structure. With the existing pricing system, the road is open to others as well.

Elon Musk, CEO of Tesla, has asked India to drop tariffs and allow the business to sell automobiles made overseas at a reasonable price. Import tariff on fully built unit (CBU) cars in India ranges from 25% to 100%.

Through September of last year, Tesla executives were photographed driving a red Tesla Model 3 automobile in the national capital’s Ministry of Road Transport and Highways building. Tesla executives met with key officials from the Ministry of Road Transport and Highways to discuss their India business prospects. Several Indian states have also invited Tesla to set up their outlets.

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