{"id":140969,"date":"2022-02-08T10:44:49","date_gmt":"2022-02-08T05:14:49","guid":{"rendered":"https:\/\/www.caravanalive.com\/?p=140969"},"modified":"2022-04-06T16:36:27","modified_gmt":"2022-04-06T11:06:27","slug":"tesla-faces-obstacles-to-expand-its-market-to-india-know-why-centre-refused-its-tax-cut-proposal","status":"publish","type":"post","link":"https:\/\/www.caravanalive.com\/?p=140969","title":{"rendered":"Tesla Faces Obstacles To Expand Its Market To India; Know Why Centre Refused Its Tax Cut Proposal?"},"content":{"rendered":"<div class=\"2a6a8c3593e6620bd92d71f585bdd19b\" data-index=\"4\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6453632170035383\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- NEW RESPONSIVE -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6453632170035383\"\r\n     data-ad-slot=\"2960496911\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n\n<p>The US-based electric vehicle manufacturer, Tesla Inc., has been recently turned down by the Indian government on a proposal demanding a tax cut for importing manufactured cars into the country. The proposal was rejected under the pretext of a non-coherent plan by the EV manufacturer.<\/p>\n\n\n\n<p>Tesla Inc. tabled the proposal to deduct import tax on fully assembled cars that the company will export into the country. It has no immediate plans to set up a manufacturing unit in India. While the move may not be environment-sensitive, there are certain reasons why the government decided to discard Tesla&#8217;s proposal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Unfavourable Move<\/h2>\n\n\n\n<p>Tesla&#8217;s proposal to implement duty cuts came with no detail on establishing its manufacturing units in India. However, it detailed that the construction of domestic manufacturing units will be subjected to the sales response in the country. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/1.0-1024x683.jpg\" alt=\"\" class=\"wp-image-140972\" srcset=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/1.0-1024x683.jpg 1024w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/1.0-300x200.jpg 300w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/1.0-768x512.jpg 768w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/1.0-195x130.jpg 195w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/1.0.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>The Centre found the proposal unfavourable as the demand for the tax cuts would lead other firms to demand similar concessions. A senior government official said Tesla produces super-class EVs and it is unreasonable to seek customs exemption. There is no ground for the company&#8217;s argument to set up a manufacturing unit based on the number of sales it makes.<\/p>\n\n\n\n<p>\u201cTesla wants customs duty cuts for imports. They are welcome to come and produce. But his argument is first I want to see how many people in India buy my vehicle. For that, he needs a lower customs duty\u2026if there\u2019s enough turnover I might come. It\u2019s not a poor man\u2019s car. They are not producing a small EV equivalent for the middle class. They are producing a superclass car. Why should we give a Customs exemption? If you can afford it, please pay the duty and take it,\u201d said the senior official.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Unequivocal Support From States<\/h2>\n\n\n\n<p>The founder of Tesla, Elon Musk, had last month tweeted regarding the challenges he is facing with the Indian government to launch the flagship electric cars in the country. <\/p>\n\n\n\n<p>\u201cStill working through a lot of challenges with the government,\u201d Musk tweeted as a response to a Twitter user.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/106926995-1628885360355-elon2-1024x683.jpg\" alt=\"\" class=\"wp-image-140973\" srcset=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/106926995-1628885360355-elon2-1024x683.jpg 1024w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/106926995-1628885360355-elon2-300x200.jpg 300w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/106926995-1628885360355-elon2-768x512.jpg 768w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/106926995-1628885360355-elon2-1536x1024.jpg 1536w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/106926995-1628885360355-elon2-2048x1365.jpg 2048w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2022\/02\/106926995-1628885360355-elon2-195x130.jpg 195w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Following the tweet, several state governments came forward and invited Musk to set up the store in their respective territories. States including Telangana, Maharashtra, and West Bengal urged Musk to launch his cars from their territories.<\/p>\n\n\n\n<p>\u201cHey Elon, I am the Industry &amp; Commerce Minister of Telangana state in India. Will be happy to partner with Tesla in working through the challenges to set up shop in India\/Telangana. Our state is a champion in sustainability initiatives &amp; a top-notch business destination in India,\u201d tweeted the Telangana cabinet minister KT Rama Rao.<\/p>\n\n\n\n<p>\u201cMaharashtra is one of the most progressive states in India. We will provide you with all the necessary help from Maharashtra for you to get established in India. We invite you to establish your manufacturing plant in Maharashtra,\u201d tweeted the Maharashtra cabinet minister Jayant Patil.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>The US-based electric vehicle manufacturer, Tesla Inc., has been recently turned down by the Indian government on a proposal demanding a tax cut for importing manufactured cars into the country. The proposal was rejected under the pretext of a non-coherent plan by the EV manufacturer. Tesla Inc. tabled the proposal to deduct import tax on [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":140971,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[{"category_id":36,"category_link":"https:\/\/www.caravanalive.com\/?cat=36","category_name":"Article"},{"category_id":207,"category_link":"https:\/\/www.caravanalive.com\/?cat=207","category_name":"Finance"},{"category_id":2311,"category_link":"https:\/\/www.caravanalive.com\/?cat=2311","category_name":"Science &amp; Tech"}],"tags":[{"tag_id":2941,"tag_link":"https:\/\/www.caravanalive.com\/?tag=electric-vehicle","tag_name":"electric vehicle"},{"tag_id":1735,"tag_link":"https:\/\/www.caravanalive.com\/?tag=elon-musk","tag_name":"elon musk"},{"tag_id":3094,"tag_link":"https:\/\/www.caravanalive.com\/?tag=tax-cut","tag_name":"Tax Cut"},{"tag_id":1736,"tag_link":"https:\/\/www.caravanalive.com\/?tag=tesla","tag_name":"tesla"}],"class_list":["post-140969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","category-finance","category-science-tech","tag-electric-vehicle","tag-elon-musk","tag-tax-cut","tag-tesla"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tesla Faces Obstacles To Expand Its Market To India; Know Why Centre Refused Its Tax Cut Proposal?<\/title>\n<meta name=\"description\" content=\"Tesla Faces Obstacles To Expand Its Market To India; Know Why Centre Refused Its Tax Cut Proposal. 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