The government also stated Tesla can avail of the existing schemes.
The Central government so far is not looking to frame a special policy for providing incentives for the US-based electric car makers.
Tesla, the American electric vehicle (EV) giant, has been eyeing the Indian market for several years now, seeking to officially sell its cars in the country. However, the company has faced hurdles in the form of higher tax rates on car imports. Tesla has been appealing to the Indian government for a special policy that would allow it to import its cars at lower tax rates, but so far, the government has not shown interest in framing such a policy exclusively for the company.
According to a government official, Tesla can avail itself of the benefits provided under existing schemes, such as the production-linked incentives (PLI) for auto and advanced chemistry cells (ACC) battery storage. The PLI scheme, with a substantial outlay of Rs 18,100 crore, covers various industries, including auto-components, auto, and drone sectors.
The Indian government has conveyed to Tesla that they can apply for the support measures available under the PLI scheme. The official emphasized that the policy would be the same for all companies and that creating separate policies for a single company might not be favourable. As of now, there are no plans to offer special treatment to Tesla.
The government official also revealed that representatives from Panasonic, Tesla’s largest battery supplier, have met with the government expressing their interest in manufacturing batteries in India. The government has suggested that they apply under the PLI scheme for ACC batteries, providing a level playing field for all players in the industry.
In 2021, Tesla requested the Indian government to reduce import duties on electric vehicles. The company’s chief, Elon Musk, also had a meeting with Prime Minister Narendra Modi during the latter’s visit to the US last month. After the meeting, Musk expressed confidence in bringing Tesla to India and revealed plans to visit the country next year. He hinted at a significant investment and a strong commitment to establishing a relationship with India.
India, being the world’s third-largest energy consumer, offers a lucrative market for electric vehicles, and US companies have been exploring alternate investment destinations due to growing tensions between China and the US.
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