Tesla in talks with Indian Govt for import duty exemption

Tesla is said to be in talks with the Government of India for getting an exemption from import duties on its electric cars. The automaker is trying to get a temporary exemption from the Indian Government, until it develops and starts local manufacturing operations in the country. This information was revealed by the company's CEO - Elon Musk, through his twitter account.

The Indian Government is showing inclination towards electric cars. The Union Energy and Power minister - Mr. Piyush Goyal has already expressed the government's plans to achieve total electrification of new cars by 2030. For this aim to materialize, it is important to bring Tesla in India.

Currently, Mahindra Electric is the only carmaker that is developing and selling electric cars in the country. The entry of Tesla into this marketplace will not only provide customers a highly-aspiration electric car brand, but will also boost the development pace of the electric car market in the country.

Musk is thus trying to take advantage of the government's interest in this segment to get the import duty exemption. Under the current scheme, CBU cars imported into India attract a duty of 100%-120%. This can result in a sharp surge in the price of Tesla cars in India, which could lead to drop in prospective customer interest. As a result, Tesla wants a temporary relief from import duties for its cars, until its sets up a dedicated manufacturing base in the country.