Elon Musk’s tower does not seem to contain the sum of Tesla’s entry into the Indian market. Over the past several months, things like “Kabhi Ya Kabhi Na” have come to the fore regarding the entry of this car. However, the wait for Tesla electric cars in India is now longer. In fact, Elon Musk has postponed the plan to sell these vehicles in the Indian market for the time being. According to Reuters news, Tesla Inc. Ltd. has halted the process of locating auto showrooms in India. At the same time, many of his team members working here have been given new responsibilities. Three people associated with the matter told that the company had put its entire India plan on hold.
Musk and the government face import duties
Negotiations between Tesla and the government over import duties cuts stalled for a long time. It has now been more than a year since this predicament. Elon Musk wants the government to grant an import tax exemption on bringing into India electric cars he made before setting up a Tesla plant in India, so he can test demand and response for his cars in the Indian market. However, the government made it clear that if Tesla wanted to sell cars in India, it would have to set up a factory here. It can make use of the government’s PLI scheme for this. Tesla electric cars made in China will not be sold in the Indian market.
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The government has not given any relief in the annual budget
According to Reuters, the company has set February 1 as the deadline to launch Tesla cars in India. On this day the Government of India presents its annual budget. The company wanted to know if the Indian government was making any tax changes to the budget, and whether lobbyists were working. After not doing so, the company halted a plan to bring a Tesla car to India. Regarding this whole incident, Elon Musk posted a tweet about “upcoming problems with the Indian government”. After that, many state governments invited him to set up a factory here. This includes West Bengal, Telangana, Punjab, Maharashtra and Tamil Nadu.
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60 to 100% tax on foreign electric vehicles
And Currently, electric cars that cost up to $40,000 (about Rs 30,000) are taxed at up to 60 percent in the country. At the same time, 100% tax is charged if the price is higher. The price range for Tesla models starts at $39,990 (about Rs 30 lakh) to $1,29,990 (about Rs 97.1 lakh). It has the company’s Model 3, Model Y, Model X and Model S. Model 3 has the lowest price tag in this.
And Under current import duties, only the base model of the cheapest Tesla Model 3 will attract a 60% tax. In this way, this car of about Rs 30 lakh will cost Rs 48 in India only after tax is added. If we talk about its long-range trim, its US price is $49,990 (about Rs 37.34 lakh). With taxes, it would be around Rs 75.5 lakh in India.
And Tesla’s Model Y base price is $53,990 (about Rs 40 lakh) in the US, which will be available in India for Rs 80 lakh. Similarly, the base price of the Model X is $99,990 (about Rs 74.6 thousand), which will cost Rs 1.5 crore in India. The base Model S costs $89,990 (about Rs 67.2 thousand), which will be available in India for Rs 1.3 crore after tax.