Tesla to start electric vehicle production Central government directs:: The Central government is reported to have asked US-based Tesla to start manufacturing electric cars in India before giving tax concessions.

According to central government sources:

Tesla is urging the central government to lower import duties on electric vehicles. Accordingly, vehicles with a customs duty of more than $40,000 (about Rs 30 lakh in Indian currency) are taxed at 110 percent.

Tesla to start electric vehicle

In this context, Tesla is urging the central government to impose a 40 percent tax on electric cars for all categories, regardless of tariff value. The company has also sought repeal of the additional 10 per cent tax levied on electric cars for social welfare schemes.

So far, the government has not announced any such offer to any vehicle manufacturer. The central government believes that listening to Tesla’s demands will not bode well for other companies that have invested billions of dollars in India.

Tesla to start electric vehicle

According to local sources, the Union Ministry of Heavy Duty has urged Tesla to start producing electric cars in India before considering tax concessions.