Sensation after Elon Musk's tweet, these states want Tesla to set up EV factories

New Delhi: 

After Telangana, now Maharashtra and West Bengal have invited Tesla CEO Elon Musk to set up electric vehicle (EV) manufacturing plants in their state. 

Maharashtra Water Resources Minister Jayant Patil wrote on Twitter on Sunday that his state could be the site for setting up a Tesla manufacturing plant to manufacture electric vehicles in India. 

Meanwhile, the West Bengal government has also invited Tesla to set up its own car plant in the state. West Bengal Minister Mohammad Ghulam Rabbani on Saturday responded to Elon Musk’s tweet in which the Tesla CEO wrote that his company was still facing several challenges with the Indian government in starting operations in the country.

So far Telangana first and then Maharashtra, then the third state i.e. West Bengal has made an open offer to Elan Musk’s electric vehicle (EV) manufacturing giant Tesla to set up an electric vehicle manufacturing plant in India.

‘Indian import duty highest in world’

Elon Musk has been wanting to start manufacturing and business operations in India for a long time. Elon Musk has been pressuring the Indian government for some time to give some tax breaks on his cars. 

On the other hand, the government has flatly refused to make any concession in tax exemption. Elon Musk had expressed concern in August last year that Indian import duty is higher than any other major country in the world, which is affecting the OEM scheme and that is why there are so many problems in starting a business in India.

100 percent tax on Tesla cars

Tesla plans to sell imported electric cars in India this year, but says the tax rate in India is the highest in the world. Tesla wants the government in India to reduce import duties. 

Elon Musk has said Tesla may open a factory in India, but it will depend on the success of its imported cars in the country. 

In India, cars currently imported are taxed at 60-100 per cent. That’s 100 percent on cars worth more than 40 40,000 and 60 percent on cheaper cars.

What does the government have to say?

On the other hand, the government says that no vehicle manufacturing company can be given a tax exemption on such imports. Giving tax benefits to Tesla will not send a good message to other companies investing in India. 

The government also recently clarified that Tesla Inc should come to India and start a local manufacturing unit and take advantage of the tax exemption. The government says Tesla is taking the time, as importing and selling Tesla cars would be expensive.


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