High Import Duties In India To Hamper The Entry Of Tesla Cars – TyreCafe

by Editor News

tesla cars

Since 2014, there have been a lot of rumours about Tesla cars coming to India. The company had also added India to its list in 2016 after introducing the Model 3 to the world. This had certainly raised the country’s hopes for seeing Tesla’s electric car in the country.

In 2018, Elon Musk had said that Tesla Cars might come to India very soon but that plan did not work out. In all his replies to the question, 'When is Tesla coming to India?', there's always been an underlying optimism but this time around the answer to the same question was clouded with a lot of scepticism. Elon Musk's answer to a tweet by Yashwant Reddy says, "I'm told import duties are extremely high (up to 100%), even for electric cars. This would make our cars unaffordable."

This is, of course, a true story. For cars that cost above ₹ 27 lakh, the import duty applied to them is 100 per cent. For cars that are less than that, the import duty applied to them is 60 per cent. Therefore, the cheapest Tesla, Model 3 which costs around Rs 20-Rs 25 lakh in international markets will have a 60 per cent import duty in India and will be much expensive to buy. The only solution to this is if an assembly plant is set up in India, then the import duty would be around 10 to 15 per cent. The Government has also taken a step reduced GST on EVs from 12 per cent to 5 per cent. This will also help reduce the price of electric cars gives them a much-needed momentum.

Tesla had also planned to set up its Supercharger network across India, which was promised in 2016. Since the government has recently reduced the GST on charging stations from 18 to 5 per cent, this could be the right time for the carmaker to start the supercharger network which promises to fully charge a car in just 75 minutes.





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