Highlights

  • Tesla has been lobbying for a reduction of the customs duty to 40% for EVs
  • Elon Musk had 'committed' on Twitter to bring Tesla to India by this year.

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Tesla cars will fall into the bracket of 100% import duty as the cost exceeds $40,000 as per India's current duty structure. 

Elon Musk to PM Modi: Please cut import tax on Electric Vehicles

Elon Musk's Tesla has reached out in a last resort to PM Narendra Modi's office with the hope of getting import tax on EVs cut before starting the India road trip.

Knock, Knocking on the PM's door

Reuters reports that Tesla's officials had a meeting with executives at PM Modi's office reiterating in a closed-door meeting that the import taxes were too high.
Quoting unnamed sources the wire news service said that Tesla's urged a cut in dues as the current structure would not make its business in the country a "viable proposition".

Speed bump at the Road Ministry

This comes as the same request to the Road Ministry seems to have hit a bump. Union Minister Nitin Gadkari recently stated "I have told Tesla that don't sell electric cars in India which your company has manufactured in China. You should manufacture electric cars in India, and also export cars from India," he said, adding Tesla had been assured of all necessary support from the Indian government.

Tesla's struggle to enter Indian market

At present, India levies one of the highest import duties internationally. It imports 60% on electric vehicles that cost $40,000 or less, and 100% duty on those priced over $40,000 (which is the category Tesla cars fall into.) Tesla has been lobbying for a reduction of the customs duty to 40% for EVs

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