The government will soon take a decision on Tesla’s proposal for a duty cut in India, NITI Aayog CEO Amitabh Kant said. A final decision will be taken by the Ministry of Finance’s revenue department.
Local assembly plants
The government wants the US-based EV maker to set up manufacturing units in India. The Ministry of Heavy Industries wants Tesla to consider setting up local assembly plants of semi-knocked down units.
This will avail reduced duties on kits and later scale up to complete manufacturing . Tesla said that its cars cannot be assembled from kits. The government fears that an outright concession in duty will result in imports of EVs instead of local manufacture.
