Shock to Tesla, Modi government categorically refuses to cut import duty on e-vehicles

New Delhi. Tesla’s plans in India have suffered a major setback. In fact, the Narendra Modi government at the Center has refused to reduce the tax on the import of Electric Vehicles (E-Vehicles). Tesla CEO Elon Musk urged the Modi government to reduce the tax on the import of e-vehicles. He had said that earlier he would sell his imported electric cars in India. Only then will we consider setting up a factory here. Union Minister Krishan Pal Gurjar said in the Lok Sabha about this that the Ministry of Heavy Industries is not considering any proposal to reduce the tax on the import of e-vehicles.

‘No idea to cut import duty on e-cars right now’
The Ministry of Heavy Industries makes the policy for the auto industry. During the monsoon session, Union Minister Gurjar said that the government is taking all possible steps to promote the use of electric cars. These include reduction in domestic taxes and increasing the number of charging stations. This stand of the government is being seen as an ongoing tug of war between the central government and Tesla chief Elon Musk. The government wants to emphasize on increasing the production of electric cars in the country. At the same time, Musk wants the government to allow him to import electric cars at a cheaper price before setting up a factory in India. On the question related to this, the Union Minister said that at present there is no such plan.

The request was made to reduce the import duty to 40 percent
Tesla had written a letter to the Ministry of Transport and Industry in India during June 2021. In this, he urged to reduce the import duty on electric cars to 40 percent. Currently, the import duty on electric cars in India ranges from 60 to 100 percent. After this, Elon Musk said in a tweet that if Tesla is allowed to sell imported electric cars in India in the initial phase, then it is fully expected to set up a factory here.

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