Center Rejects Tesla’s Request To Relax Import Tax Regime; Read To Know More!

elon musk

The Centre has rejected Elon Musk’s claims on the “challenges” that the billionaire said his company Tesla is facing while working with the Indian government to urge its cars to be launched within the country. Sources told Business Today that Musk is trying to place pressure on the government.

Through social media, Tesla wants the country to cut back import duties on its cars without committing to provide within the country. The Centre has once more turned down the demand for tax cuts to import electrical cars, said rules already permit conveyance in partially-built vehicles and collecting them domestically at a lower levy.

Indian government levies a 60% import tax on electric vehicles priced at $40,000 or less, and 100% on those priced above $40,000. Tesla cars start at $44,690 (approx. ₹33,41,780) within the US, and selling cars in India with these import taxes would end at exorbitant prices for consumers and eventually hamper the company’s sales.


Tesla has reportedly held a gathering with the establishment to cut back on import taxes levied on electric vehicles.
The EV maker wants to begin selling imported cars in India by this year.


The company has also requested a gathering with Tesla founder Elon Musk and Prime Minister Narendra Modi.

About Tesla Inc.

Elon Musk co-founded and leads Tesla, SpaceX, Neuralink and also the Boring Company.

As the co-founder and CEO, Musk leads all product design, engineering, and global manufacturing of the company’s electric vehicles, battery products, and alternative energy products.

Since the company’s inception in 2003, Tesla’s mission has been to accelerate the world’s transition to sustainable energy. The primary Tesla products include the Roadster sports car, debuted in 2008, followed by the Model S sedan, which was introduced in 2012 and the Model X SUV, which launched in 2015.

Model S received Consumer Reports’ Best Overall Car and has been named the Car of the Year by Motor Trend, while Model X was the primary SUV ever to earn 5-star safety ratings in every category and sub-category within the National Highway Traffic Safety Administration’s tests.

In 2017, Tesla began deliveries of Model 3, a mass-market electric vehicle with over 320 miles of range, and unveiled the Tesla Semi, which is meant to avoid wasting owners a minimum of $200,000 over 1,000,000 miles supported fuel costs alone.

In 2019, Tesla unveiled Cybertruck, which can have better utility than a standard truck and more performance than a sports car, still because of the Model Y compact SUV, which began customer deliveries in early 2020.

Tesla also produces three energy storage products, the Powerwall home battery, the Powerpack commercial-scale battery and Megapack, which is intended for utility-scale installations. In 2016, Tesla became the world’s first vertically-integrated sustainable energy company with the acquisition of SolarCity, the leading provider of alternative energy systems within the US, and in 2017, released Solar Roof – a fine-looking and affordable energy generation product.

Elon Musk had been seeking tax breaks from the Indian government for an extended time. However, the government has maintained that the US-based auto company should manufacture in India.

Sources said that the government won’t bow right down to pressure tactics. They added that India currently contains a PLI scheme for automobiles, especially electric vehicles, under which Tesla will get benefits if they produce locally. Tesla can herald cars in kits with zero per cent duty and assemble them in India.

The comments came after Elon Musk had earlier while replying to a Twitter user, said, “Still working through lots of challenges with the government.” Musk was replying to an issue on when Tesla cars are going to be launched in India.