The Hindustan Express
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‘No suggestion on import duty subsidies’ is what the Center says, dealing a blow to Elon Musk’s Tesla

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<p>According to Som Parkash, India’s state minister for commerce and industry, the government is not thinking of lowering tariffs on imported electric cars, he informed the house on Wednesday. The decision severely undermines Tesla’s intentions for India, since the Elon Musk-owned business had asked for tax benefits in order to establish a massive manufacturing there.</p>
<p><img decoding=”async” class=”alignnone wp-image-307211″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-no-suggestion-on-import-duty-subsidies-is-what-the-center-says-dealing-a-blow-to-e-750×422.jpg” alt=”theindiaprint.com no suggestion on import duty subsidies is what the center says dealing a blow to e” width=”1076″ height=”605″ title=”'No suggestion on import duty subsidies' is what the Center says, dealing a blow to Elon Musk's Tesla 15″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-no-suggestion-on-import-duty-subsidies-is-what-the-center-says-dealing-a-blow-to-e-750×422.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-no-suggestion-on-import-duty-subsidies-is-what-the-center-says-dealing-a-blow-to-e-1024×576.jpg 1024w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-no-suggestion-on-import-duty-subsidies-is-what-the-center-says-dealing-a-blow-to-e-768×432.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-no-suggestion-on-import-duty-subsidies-is-what-the-center-says-dealing-a-blow-to-e-1536×865.jpg 1536w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-no-suggestion-on-import-duty-subsidies-is-what-the-center-says-dealing-a-blow-to-e-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-no-suggestion-on-import-duty-subsidies-is-what-the-center-says-dealing-a-blow-to-e-150×84.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-no-suggestion-on-import-duty-subsidies-is-what-the-center-says-dealing-a-blow-to-e.jpg 1599w” sizes=”(max-width: 1076px) 100vw, 1076px” /></p>
<p>The state minister said, “At this time, there is no proposal to provide a subsidy on the import duty on electric vehicles in India, or to provide an exemption from local value addition costs.”</p>
<p>At the moment, Tata Motors leads the Indian electric vehicle market in sales. The nation’s best-selling electric vehicle is the Nexon EV.</p>
<p>Although MG Motors just debuted its electric vehicle in India, it hasn’t had the same level of success as the Tata Nexon EV.</p>
<p>The Indian government is making an effort to increase domestic EV manufacturing. It introduced a $3 billion incentive package in 2021. According to Bloomberg, it is also providing incentives to businesses that want to produce batteries in India.</p>
<p>Given that Bloomberg News revealed last month that the government was developing a policy that would have let foreign businesses import electric vehicles at concessional tax rates if they committed to someday manufacture in India, the government’s announcement is an unexpected turn of events.</p>
<p>There have been discussions between Tesla and the Indian government about producing the vehicles there. Elon Musk has pushed for tax reductions in order to attract manufacturing to the nation.</p>
<p>Musk said in June that his business would want to make investments in India. That being said, the proposal may be postponed in light of the government’s admission.</p>
<p>The two parties were in negotiations and were close to reaching a deal that would allow automobiles made overseas to be sold in the nation starting in 2024. Also, they planned to build a massive plant in India for the next two years. But for the time being, it seems like the idea is on hold.</p>
<p>Piyush Goyal, the union minister of trade, recently said that Tesla intended to purchase components from India for 1.9 billion dollars this year.</p>


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