New Delhi: The two American companies Apple and Tesla have a major contribution in China's overall economy in boosting the economy and creating employment. Recently, due to US-China relations and Covid policy, Apple turned to India.
Now after Apple, China may face another blow. Elon Musk's company Tesla is also going to enter the Indian market soon. There is a possibility that Tesla may get approval for entry in India in the new year. The PMO has ordered the government departments to complete the work of giving all the necessary approvals by January 2024.
Tesla is an American multinational automotive and clean energy company headquartered in Austin, Texas. It designs and manufactures electric vehicles (cars and trucks). Tesla is one of the world's most valuable companies and, as of 2023, is the world's most valuable automaker. In 2022, the company led the battery electric vehicle market, with 18% share..
Tesla's investment proposal discussed in meeting held by PMO
According to information received from sources, the PMO held a meeting with top officials on Monday to take stock of the next phase of EV manufacturing in the country, including Tesla's investment proposal. According to experts, the agenda of this meeting was focused on policy matters but it was said that Tesla's proposed investment in the country should be approved expeditiously by January 2024.
In June this year, Prime Minister Narendra Modi had visited America. During this time, Tesla CEO Elon Musk and PM Modi also met. Since then the Ministries of Commerce and Industry, Heavy Industry and Electronics and IT are in discussion with the electric car maker. This deal till January is also important because US President Joe Biden will be present as the chief guest on the occasion of Republic Day.
Tesla had sought a 40% import duty on fully assembled electric cars
Senior Tesla executives have discussed the plan to set up a car and battery manufacturing facility in India. Besides, the EV maker has also asked to bring its supply check ecosystem in India. According to the information, ministries and government departments have been asked to resolve any differences with Tesla. Tesla had earlier sought a 40 percent import duty on fully assembled electric cars, while the current rate is 60 percent on vehicles priced below $40,000 and 100 percent on vehicles priced above.
Tesla wants its cars to be considered EVs
India's customs system does not differentiate between electric cars and cars running on hydrocarbons and levies higher charges to promote local manufacturing. The company wants its cars to be considered EVs and not luxury cars. The high charge has been a sticking point between Tesla and the Indian government. Tesla wants to sell some cars in the country first before setting up a manufacturing unit.
There may be changes in EV policy
To bring Tesla to India and accept this, the government can also change its EV policy. For this, a new category may also be announced in this policy. However, officials say that introducing this new category does not mean that it is being done only for Tesla. Any EV maker in the world who wants to set up manufacturing in India will get the benefit of this facility.
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