Tesla in talks with Indian government for temporary relief from import duties

Team OD Updated: June 21, 2017, 04:08 PM IST

The government of India seems pretty clear that by the year 2030, only electric cars will be sold in the country. That's a very large market to capture, and trying to get its foot in the door now already, is Tesla. Earlier this year, Elon Musk, CEO of Tesla, stated in a tweet that he might set up shop in India in the summer of 2017. But that might just mean that he will begin setting up the infrastructure, and not start selling cars immediately. After all, India barely has an ecosystem for electric vehicles. Yesterday, in a response to a question on when the brand will come to India, Musk tweeted that he is currently in talks with the Indian government, asking for "temporary relief on import penalties/restrictions" on his products till he builds a local factory. He had also hinted earlier that he might build a Tesla Gigafactory in India.

Tesla Model 3 showcase (1)

Evidently, he is very serious about making an impact in the Indian EV sector as soon as possible. Last month, again in a response to a question on Twitter, Musk responded saying, "Maybe I'm misinformed, but I was told that 30 per cent of parts must be locally sourced and the supply doesn't yet exist in India to support that." However, the government's Make In India Twitter handle replied with clarifications. It stated that the FDI policy in India doesn't specify that manufacturers have to source a minimum number of components locally, to sell a product here.

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