Tesla India urges government to reduce import duty
Electric car major Tesla is currently in talks with the Indian Government to reduce the import duty while it sets up a production plant in India. Tesla had committed to arrive in India with the Model 3 by this summer, but has missed that deadline.
Electric car major Tesla is currently in talks with the Indian Government to reduce the import duty while it sets up a production plant in India. Tesla had committed to arrive in India with the Model 3 by this summer, but has missed that deadline.
However, in a reply to a tweet from a Twitter account holder, Tesla founder Elon Musk tweeted, “In discussions with the government of India requesting temporary relief on import penalties/restrictions until a local factory is built”.
The Government of India’s Central Board of Excise and Customs (CBEC) currently imposes a 60 percent customs duty on import of Completely Built Unit (CBU) electric cars priced below $40,000 while the customs duty on Completely Knocked Down (CKD) units is 10 percent.
Meanwhile, if the price of the unit being imported is over $40,000, customs duty then leviable is 100 per cent. If things were to go according to plans, Tesla will launch the Model 3 in India first.
