Tesla execs press for duty cut in meet with govt officials
New Delhi: A delegation of senior Tesla executives, comprising leaders of its public policy, supply chain and business development teams, is visiting India to actively engage with all government stakeholders to gain insights into the market. People aware of the matter, seeking anonymity, said that the representatives held meetings with Piyush Goyal, the commerce and industry minister, to discuss the incentives and benefits for selling its electric cars in India. The officials were also part of the celebrations on the sidelines of the inauguration of the India Trade Promotion Organization complex Bharat Mandapam, organized by the ministry, in the presence of Prime Minister Modi and Goyal.
In earlier meetings with the ministry of heavy industries, Tesla executives discussed the possibility of importing its EVs from the Berlin gigafactory for the Indian market. However, the government’s stand is that it will not consider any concessionary rate of taxation for a single original equipment manufacturer. The company was, in fact, encouraged to explore the assembly operations of luxury manufacturers like Mercedes Benz India and BMW, in India, to understand how the local ecosystem operates.
“We cannot give privilege to one firm when other brands pay full duty on imports. Other luxury carmakers also assemble in India by importing parts, with minimal domestic value addition. However, India is an important market for Tesla, and the company cannot and doesn’t want to ignore India", a government official privy to the discussions said on condition of anonymity.
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