Wednesday, June 29, 2022

Musk’s Tesla in India: Gurjar says apply before looking for tax cuts

Union Minister of State for Power and Heavy Industries, Krishan Pal Gurjar

Modi sarkar me aisa nhi ho sakta ki koi bazaar Bharat ka chahe aur rozgaar Cheen ke logo ko miley,” said Union Minister Krishan Pal  Gurjar, replying to a question on launching of Electric vehicle Tesla. 

The minister of State for Heavy industries  told the Lok Sabha during Question Hour to Congressman K Suresh that Tesla has yet to apply for schemes as per the government’s policy.

Last year, the Elon Musk-led company sought a reduction in import duties on electric vehicles (EVs) in India. India imposes 60% to 100% customs duty on imported cars. 

However, the Ministry of Heavy Industries asked the firm to start manufacturing its iconic EVs in the country before any tax concessions can be considered.

Krishan Pal Gurjar said the government has Production Linked Incentives for automobile and auto components as well as for manufacturing Advanced Chemistry Cell (ACC) battery. Both schemes are open for domestic as well as foreign entities. The minister further informed that 115 companies have already applied under the scheme out of which 50 are foreign companies.

“Want to ask the member if they want India’s money to go to China? That company has not applied as per our policy. For that (company), doors of India are open, they can come apply as per policy, set up company, give jobs to our people, increase government revenue,” the minister said.

The matter came live afterT esla founder and CEO Elon Musk on Thursday informed that the US-based EV-maker is facing a ‘lot of challenges’ for its car launch in India, and the company is working with the govt to overcome obstacles. 

Tesla has urged Prime Minister Narendra Modi’s office to cut import taxes on electric vehicles. Tesla said that before starting production in India, it wants to trade the market. 

Tesla CEO Musk hopes for a ‘temporary tariff relief for electric vehicles’ as Tesla continues to lobby hard to reduce the taxes before it officially launches any cars in India. 

Musk had said that Tesla wants to launch its cars soon in India, but Indian ‘import duties are the highest in the world by far of any large country!’ He had also said that a Tesla ‘factory in India is quite likely’ but at the condition that its imported cars first succeed in the country.

However, this argument seems hollow as EVs from Tesla is eagerly awaited by Indian consumers as per reactions on social media and success of Tesla EV कार is almost a certainty. 

According to a regulatory filing, the firm registered Tesla India Motors and Energy Pvt Ltd with RoC (Registrar Of Companies) Bangalore.

The company has been registered as an unlisted private entity with a paid-up capital of ₹1 lakh. 

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