(CTN News) – Tesla is reportedly open to setting up a manufacturing facility in India, investing $2 billion, on the condition that the government lowers the import duty on its vehicles to 15% for the first two years of operation, as per the Economic Times.
In August, Reuters released a report stating that India is in the process of developing a fresh electric vehicle policy that aims to reduce import taxes to as low as 15%.
This is a significant reduction compared to the current 100% on cars priced above $40,000 and 70% for the rest. In return for this reduction, the policy will require a commitment to local manufacturing.
According to anonymous sources cited in an ET report, the electric vehicle (EV) manufacturer led by Elon Musk is prepared to invest a maximum of $500 million if the government approves a reduced duty for 12,000 vehicles, and up to $2 billion if the concession is for 30,000 vehicles.
The government is currently evaluating Tesla’s $2 billion investment proposal, as reported by the Economic Times.
However, they are also contemplating a reduction in the number of cars imported at a lower duty, which contrasts with Tesla’s proposal.
Tesla, the Department for Promotion of Industry and Internal Trade, the ministry of Heavy Industries, the ministry of Road Transport & highways, and the Ministry of Finance did not respond promptly to Reuters’ inquiries for comment.