Tesla India plans alive, as the company is planning to setup a plant here and urges the Government to reduce import duty.

Tesla Model 3 Front
Tesla’s Model 3 is the most affordable Tesla and has a range of 344 kms

Electric car major Tesla is currently in talks with the Indian Government to reduce the import duty while it sets up a production plant in India. Tesla had committed to arrive in India with the Model 3 by this summer, but has missed that deadline.

However, in a reply to a tweet from a Twitter account holder, Tesla founder Elon Musk tweeted, “In discussions with the government of India requesting temporary relief on import penalties/restrictions until a local factory is built”.

The Government of India’s Central Board of Excise and Customs (CBEC) currently imposes a 60 percent customs duty on import of Completely Built Unit (CBU) electric cars priced below $40,000 while the customs duty on Completely Knocked Down (CKD) units is 10 percent. Meanwhile, if the price of the unit being imported is over $40,000, customs duty then leviable is 100 percent.

Tesla entering the Indian markets will definitely give wings to India’s plans of becoming an all-electric car market by 2030. Mahindra boss Anand Mahindra replied to the tweet of Elon Musk – “Time you got out here Elon. You don’t want to leave that whole market to Mahindra do you?? The more the merrier–and greener..!”.

If things were to go according to plans, Tesla will launch the Model 3 in India first.

Tesla India Plans

– Tesla in talks with the Indian Government to reduce the import duty
– Tesla is also looking at setting up its production plant in India
– Tesla might launch the Model 3 in India initially

Tesla Model 3
Tesla has urged the Indian Government to reduce the import duty