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Tesla in talks with Indian Government to exempt tax duty

Tesla in talks with Indian Government to exempt tax duty

Snapshot: The Government has announced that it will be phasing out all petrol and diesel engine cars by 2030 and also ensure that by 2020, more than 60 lakh people buy complete electric or hybrid cars.

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Nowadays, Tesla Inc. has always been up in the news for something or the other, be it actively testing the Model 3 or trying hard to get the model far reached. This time, Elon Musk, the CEO of Tesla Inc. himself announced on social media (Twitter) that the company is presently in talks with the Indian Government to allow some temporary relief from the current tax system, considering that the company does not have any production source in the country and would have to import all the units as CBUs (completely built units).

Earlier in 2017, Tesla Inc. had stated that it would bring the Model 3 in India by the end of the year. However, due to the lack of supply in any kind of resources, the company had to drop the idea. The present scenario stands as until it does not get on with localisation, it would have to pay a tax slab of 100-120 per cent, which would not allow an aggressive and competitive pricing.

The CEO had said this thing as a reply to a person on Twitter. He was asked about the Indian timeline of Model 3 to which Elon replied that he is requesting the Government to provide some kind of temporary relief on the current taxation system on CBUs until a local assembling plant gets into operation.

There is, however, a good news for Tesla Inc. if they consider doing business in India in the future. The Government has announced that it will be phasing out all petrol and diesel engine cars by 2030 and also ensure that by 2020, more than 60 lakh people buy complete electric or hybrid cars. This is, of course, a great way for the company to get a firm base in India, which is the third largest automobile market in the world. If the company succeeds in doing so, it wouldn't be facing much competition as electric car segment is not at all populated and only Mahindra has just one e-car on the block.

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