Tesla: The Elon Musk-led electric vehicle manufacturer reportedly wants to invest up to $2 billion to establish manufacturing in the nation.
According to a story published in the Economic Times on Friday, Tesla is prepared to invest up to $2 billion to establish a plant in India, provided that the government reduces the import tariff on its vehicles to 15% for the first two years of operation.
According to a report by Reuters in August, India is developing a new electric vehicle (EV) policy that would reduce import duties to as low as 15%, from the current 100% on cars costing more than $40,000 and 70% on all other cars, in exchange for a pledge to support some local production.
The government-approved lower tariff for 12,000 vehicles and up to $2 billion if the concession is for 30,000 vehicles would entice the Elon Musk-led electric vehicle (EV) manufacturer to spend up to $500 million, according to an ET article citing unidentified sources.
According to the Economic Times, while the government is considering the feasibility of Tesla’s $2 billion investment plan, it prefers to import fewer cars at a reduced tariff.
Reuters reached out to Tesla, the Ministry of Heavy Industries, the Department for Promotion of Industry and Internal Trade, the Ministry of Road Transport & Highways, and the Ministry of Finance, but none of them responded right away.