Musk wants to bring Tesla to India, blames high import duties


New Delhi, Jul 25 (IANS): Tesla CEO Elon Musk said that its electric vehicle (EV) company wants to launch cars in India, but the country's import duties on EVs are "highest in the world by far".

Replying to an Indian YouTuber on Twitter, who asked him to launch Tesla cars ASAP in India, Musk blamed high import rates in the country.

"We want to do so, but import duties are the highest in the world by far of any large country!" he wrote.

"Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India," he added.

Last year, a report said that India has taken a slew of measures to promote the use of electric cars in the country.

The government slashed Goods and Services Tax (GST) on electric vehicles to five per cent from earlier 12 per cent but to protect domestic automakers, it levies 125 per cent duty on imported vehicles.

"I'm told import duties are extremely high (up to 100 per cent), even for electric cars. This would make our cars unaffordable," Musk earlier said while responding to a tweet from an Indian follower.

Close on the heels of Union Budget providing tax relief for buying electric vehicles, the GST Council in its meeting last year in July cut the tax on electric vehicles (EV) from 12 per cent to 5 per cent, effective August 1, 2019.

The twin rate cuts are set to further boost the EV sector. The Budget, last year, had proposed an Income Tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase electric vehicles.

  

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Comment on this article

  • The guy, Kolkata

    Mon, Jul 26 2021

    The whole system is the main reason why we don't get good things. They're still busy with political, religious disputes. Other countries giving tax relief to promote EVs, but here they're charging for every freaking thing.

    DisAgree Agree [1] Reply Report Abuse

  • Laaqui, KARIYANGALA

    Mon, Jul 26 2021

    How can modi sell his fuel at 200/litre if Tesla car comes to india....?

    DisAgree Agree [4] Reply Report Abuse

  • Jossey Saldanha, Thane

    Mon, Jul 26 2021

    Modi wants money to build his own Home @ Central Vista ...

    DisAgree [1] Agree [6] Reply Report Abuse


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