Tamil Nadu based top YouTuber Madan Gowri seems to be one of the many Indians who has a crush on Tesla cars. Who wouldn’t? These cars are epitome of luxury, style and the future.
Tesla was supposed to be in Indian markets in 2020 but things did not work out. But in October 2020, Elon Musk, the CEO of Tesla,Inc. himself confirmed that the E-Cars from the US automobile company will be in India in 2021.
When Madan Gowri directly asked Elon Musk on Friday via Twitter to launch Tesla cars in India as soon as possible, Musk replied “We want to do so, but import duties are the highest in the world by far of any large country!”
“Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India.”
Musk’s comment is not entirely reflective of India’s aspirations with climate goals. The Central Government has been pushing for green fuel and electric vehicles for cutting India’s huge Rs. 8 lakh crore crude imports. Under the Paris Agreement, India had promised to reduce its emissions intensity—greenhouse gas emissions per unit of GDP— by 33 to 35 per cent below 2005 levels by the year 2030 and to achieve this goal, India needs lots of affordable solutions.
Tesla is not that affordable solutions provider. By the end of this year, India was supposed to receive Tesla’s Model-3 which according to experts will be priced anywhere between Rs.55 lakh to Rs.60 lakh.
There are other Indian players like Tata and Mahindra who are eyeing to be affordable solution providers. India also charges a heavy import tax to promote local manufacturers’ e-vehicles.
“According to a report in Reuters, Tesla, which aims to begin sales in India this year, said in a letter to ministries and the country’s leading think-tank Niti Aayog that slashing taxes on imports of fully assembled electric cars to 40% would be more appropriate, according to the sources,” Live Mint reported.
“Tesla’s pitch to lower duties is likely to face resistance from PM Modi government which has championed high import taxes for many industries in a bid to boost local manufacturing,” the report added.
Tesla can still be imported in India but that is going to cost a lot. India’s richest man Mukesh Ambani and Bollywood actor Riteish Deshmukh are some of the few Indians who own a Tesla but theirs cost in crores of Rupees.
