High import duties will make Tesla electric cars unaffordable in India: elon Musk

In all his replies to the question, ‘When is Tesla coming to India?’, there’s always been an underlying optimism but this time around the answer to the same question was clouded with a lot of skepticism. Elon Musk’s answer to a tweet by Yashwant Reddy says, “I’m told import duties are extremely high (up to 100%), even for electric cars. This would make our cars unaffordable.”

Written by August 2, 2019 13:12

New Delhi: India has always been a big market for auto sector and even a bigger market for electric vehicles, as government is trying to support and encourage use of electric vehicles. Electric vehicles are the future in all terms as electric vehicle will save other fuel but it will also preserve the environment as electric vehicles run on renewable energy  and are pollution free.

There has been a lot of talk since 2014 about Tesla coming to India. In fact the company added India to its order list in 2016 when it introduced the Model 3 to the world and this certainly got our hopes high on seeing the electric car maker in the country. Closer to the 2018 Auto Expo, Elon Musk, had said that Tesla might be in the country very soon but that plan did not work out.

In all his replies to the question, ‘When is Tesla coming to India?’, there’s always been an underlying optimism but this time around the answer to the same question was clouded with a lot of skepticism. Elon Musk’s answer to a tweet by Yashwant Reddy says, “I’m told import duties are extremely high (up to 100%), even for electric cars. This would make our cars unaffordable.”

The Government of India is aiming at making the country a global EV manufacturing hub. A tax benefit of Rs 1.5 lakh on the interest paid on the loans taken for the purchase of the EVs has been announced. The GST rate on EVs has been reduced to 5 per cent from 12 per cent. Besides, the tax rate on chargers or charging stations for EVs has been lowered to 5 per cent from 18 per cent.

In July, Hyundai launched Kona electric SUV in India for a starting price of Rs 25.30 lakh (ex-showroom) and received 120 confirmed bookings within 10 days of the launch. Towards the end of 2019, Audi will also introduce e-tron in the country and we are expecting it to be priced around Rs 1.15 crore (ex-showroom, India). In December, MG will drive in EZS electric SUV in India.