The central government is not looking at extending any tailor-made incentives to US-based electric car maker Tesla as of now, though states are free to offer concessions to the company, citing sources PTI reported on Wednesday. The company is talking about building a complete supply chain in the long run as they are showing keen interest in India, sources privy to the development said.


The representatives of the firms visited the country last month and held meeting with various parts of the government, including the commerce and industry ministry. "We have made it very clear that imports are not the preferred thing from our side...The company is talking big in terms of complete supply chains," one of the official sources said.


According to the report, when asked about extending incentives to the firms, they added that "the government is not looking at any tailored incentives as of now. States are a different matter. States might compete with each other and someone might give them (concessions)".


In 2021, the US-based electric car maker demanded a reduction in import duties on electric vehicles (EVs) in India. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60 per cent to 100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above $40,000. 


Meanwhile, Elon Musk, CEO of Tesla, in May last week had announced that the company is making progress in selecting a location in India for its new factory, with a decision expected by the end of the year.


During an event on Tuesday, when asked by a journalist from The Wall Street Journal about the possibility of choosing India, Musk expressed his enthusiasm, stating, "Absolutely," as reported by Reuters. Amidst mounting speculation about Tesla's upcoming manufacturing facility, Musk reportedly said that the company is likely to finalise the location in the coming months.


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