Not long ago did one of the prominent Indian automobile manufacturer has extended his invitation to set up a plant in India but it seems Tesla’s Elon Musk has taken that seriously and it is believed that he is taking all the steps to make that a reality.
The news comes at a time when Narendra Modi Government has already announced its ambitious plan of making India completely electrified on the road by 2030. Tesla is planning to enter the highly lucrative Indian market as a retailer though setting up manufacturing plant in the sub continent is a distant reality as of now. Usually these imports which involved high-end cars, attract lot of restrictions and duties which needs to be relaxed, Tesla wanted.
“In discussions with the government of India requesting temporary relief on import penalties/restrictions until a local factory is built,” Elon Musk, chief executive officer, Tesla, said in a tweet.
The import restrictions which mandates the brands to ensure that 30% of the component is sourced locally may not be suitable for few of the brands as they are completely assembled outside India. Tesla is in line with Apple which is also trying to get the local source norms to be relaxed.
Tesla sells and services its vehicles on its own rather than through local dealers.
“Tesla always sells directly, but apart from asking for permission to sell directly, they might be looking for some concessions on the vehicles or the factory they want to set up. All these companies come looking for special packages,” said Abdul Majeed, partner, assurance at PwC India.
India does not restrict imports but it imposes a huge duty of 119% on completely built unit(CBU) making the cost go up by more than twice discouraging the buyers.