Union Minister Denies Any Plan To Reduce Duty On EVs Import: Shock For Tesla's India Dream

Minister of State for Commerce and Industry Som Prakash on Wednesday said the Indian government is not considering reducing the duty on imported electric vehicles. He remarked while answering in parliament. The announcement directly hit Tesla's India plans, with the Elon Musk-owned company seeking tax breaks to open its mega-factory in the country.

"Presently, there is no plan to exempt local value-added pricing or subsidy on import duty for electric vehicles in India," the minister of states said.

Currently, Tata Motors is the largest electric car manufacturer and seller in India. Its Nexon EV is the best-selling electric car in the country. Major companies like Maruti Suzuki, and Mahindra have expressed their desire to manufacture EVs, they are preparing to launch their first electric vehicle soon. Earlier, MG Motors launched their electric car in India, but it hasn't seen the success that the Tata Nexon EV has seen.

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The Union government is doing all it can to boost local EV production. In 2021, it introduced a $3.1 billion stimulus plan. Bloomberg reports that India will offer incentives to companies that want to manufacture batteries.

Bloomberg News reported last month that the government's announcement was an unexpected twist, as the government was working on a policy that allowed international companies to import electric cars at subsidized prices if they committed to manufacturing electric cars in India.

if media reports are to be believed, Tesla and the Indian government are in talks to manufacture cars in India. Elon Musk wants lower taxes to bring manufacturing to the country.

In June this year, Tesla owner Musk said his company was looking to invest in India. However, the project is likely to be delayed.

The two sides are negotiating an agreement to sell foreign-made cars from 2024. They are also preparing a mega factory in India in the next two years. However, the project seems to be getting delayed now.

Recently, Union Commerce Minister Piyush Goyal said that Tesla plans to buy components worth Rs 1.9 billion from India this year.

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