Ministers from 5 Indian states have offered Tesla to setup outlet

This move came just after the CEO of Tesla Inc took to Twitter exclaiming that he was still working through a lot of challenges with the government over import duties issues.

Politicians from five states- Punjab, West Bengal, Maharashtra and Telangana as well as Tamil Nadu have urged Tesla via Twitter to setup their that outlet in their provinces. This move came just after the CEO of Tesla Inc took to Twitter exclaiming that he was still working through a lot of challenges with the government over import duties issues.

Musk and the Indian government engaged in many talks for years, yet disapproval over a local factory and import duties resulted in an impasse, objecting it to sell its cars in India. While the Centre greatly wants Tesla to expand its factories in India but Musk stands on the ground of slashing import duties as much as 100% so that his company can establish a market.

Without government support, it could be difficult for even local companies to set up car factories in the country as red tape, labour rights, land acquisition remains constant challenge. In the past, India’s biggest conglomerate, Tata Motors Ltd, was compelled to discard a near-complete facility in West Bengal after violent protests by farmers challenging land acquisition, thwarting its attempt to build the Nano- the world’s cheapest car, in the state.

India, which estimates that it will soon overtake China setting as World’s most populous nation, is the fourth largest automobile market in the world and is an attractive proposition for EV makers however its roads are still dominated by cheap petrol & diesel cars manufactured by local units of Suzuki Motor Corp. & Hyundai Motor Co. India has pledged to reach net-zero Carbon by 2070, but electric vehicles are not accessible for most of the buyers in the country, where people average earning estimated less than $2,000 a year.

 

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