Will Elon Musk’s Tesla enter India? Find out where the conversation between the government and the company took place

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The talk of Elon Musk’s car maker Tesla coming to India has been going on for a long time. On one hand, Tesla is eager to come to India, on the other hand, the Indian government is sticking to its old terms. Now the official has cleared the situation in this matter.

Last year, Tesla founder Elon Musk said in a tweet that challenges with the Indian government were proving to be a hindrance to the launch of Tesla’s electric car there. Let us also tell you here that many state governments have invited Tesla to manufacture electric cars.

Now in an interview regarding Tesla’s entry into India, a central government official said that the center has not made any changes in the import duty. According to reports, officials attached to nodal ministries said the government will discuss the manufacturing sector with Tesla if Tesla is willing to negotiate without any preconditions.

A government official speaking to The Indian Express said that even if the change is made, it will be emphasized that reduction in import duty is not a precondition.

According to central government officials, the government may consider some concessions if Tesla presents a good plan for domestic manufacturing in India. This arrangement will be done in phases.

 

However, on the other hand, it is also being suggested that this may include some concessions in duty depending on the domestic production plan. Apart from the concessions, there may be some changes in the PLI scheme.

Also, a senior government official indicated that Tesla’s previous demand for duty cuts was seen as a precondition. This demand was made without any strong planning in India.

Amidst all the talk, it is important to know that Tesla India Motors and Energy Pvt Ltd was incorporated as a private company in January 2021. Technically it is classified as a subsidiary of a foreign company.