Tesla in India: Centre not looking at any tailored incentives, states can offer

The union government is not looking at extending any tailor-made incentives to US-based electric car maker Tesla as of now, though states are free to offer concessions to the company, sources said.

They also said that the company is talking about building a complete supply chain in the long run as they are showing keen interest in India.

The representatives of the firms visited the country last month and held meeting with various parts of the government, including the commerce and industry ministry.

"We have made it very clear that imports are not the preferred thing from our side...The company is talking big in terms of complete supply chains," one of the official sources said.

When asked about extending incentives to the firms, they added that "the government is not looking at any tailored incentives as of now. States are a different matter. States might compete with each other and someone might give them (concessions)".

In 2021, the US-based electric car maker demanded a reduction in import duties on electric vehicles (EVs) in India.

At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60 per cent to 100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000.