Around 115 companies had applied to seek benefits under the PLI scheme out of which 20 companies were recently approved by the Indian government. Tesla, however, did not apply for availing benefits under the PLI scheme.
Tesla didn’t apply for PLI scheme but requested for import duty reduction in India: Report
Ever since the news of Tesla setting up a shop in India emerged, the consumers have been waiting for the Americ EV maker to officially enter the Indian car market. Tesla was originally expected to start selling cars in India from 2021, or at least that is what Nitin Gadkari had us believe. But even a year later, Tesla’s arrival in India remains uncertain as the tussle between Elon Musk and the Indian government intensifies. The CEO of Tesla finds the taxation structure in India prohibitive and has requested the government to reduce import duties to 40 per cent on electric cars reaching India via CBU (completely built unit) route. The Indian government, on the other hand, has maintained it stand that Tesla will be able to avail benefits only if it promises to set up a manufacturing facility in India and employ Indian labour. This rift between the Indian government and Elon Musk has widened as it came to light that Tesla did not apply for the PLI (Production Linked Incentive) scheme in the country.
In case you forgot, the PLI scheme was announced by the Indian government last year and is aimed at increasing the production of electric vehicles and other clean mobility vehicles in the country. The scheme will provide incentives to automakers involved in making Advanced Automotive Products (AAT) Products (vehicles and components) from 1st April 2022 onwards for a period of 5 consecutive years. The government has lined up incentives of up to 18 per cent to encourage automakers to manufacture EVs and EV components and increase the localization of the supply chain.
Around 115 companies had applied to seek benefits under the PLI scheme out of which 20 companies were recently approved by the Indian government. These include Tata Motors, Kia, Hyundai, Ford, Mahindra, Hero MotoCorp, Ola Electric, and Bajaj. According to an ET report, Tesla did not apply for the PLI scheme, failing to show commitment to manufacturing electric cars in India. This effectively impacts Tesla’s chances of receiving a relaxation in import duties in India.
Keyword: Tesla didn't apply for PLI scheme but requested for import duty reduction in India: Report