The government also stated that Tesla can make use of the existing arrangements.
The central government does not yet intend to develop a special policy to provide incentives to US-based electric car manufacturers.
Tesla, the American electric vehicle (EV) giant, has been eyeing the Indian market for several years and is trying to officially sell its cars in the country. However, the company has faced hurdles in the form of higher tax rates on car imports. Tesla has appealed to the Indian government for a special policy that would allow it to import its cars at lower tax rates, but so far the government has shown no interest in creating such a policy exclusive to the company.
According to a government official, Tesla can take advantage of the benefits offered by existing schemes, such as the production-linked incentives (PLI) for automotive and advanced chemistry cells (ACC) battery storage. The PLI scheme, with a significant expenditure of Rs 18,100 crore, covers various industries including auto parts, auto and drone sectors.
The Indian government has informed Tesla that they can apply for the aids available under the PLI scheme. The official emphasized that the policy would be the same for all companies and that it might not be beneficial to create separate policies for one company. As of now, there are no plans to give Tesla any special treatment.
The government official also revealed that representatives from Panasonic, Tesla’s largest battery supplier, have met with the government to express their interest in battery production in India. The government has suggested that they apply under the PLI scheme for ACC batteries, creating a level playing field for all players in the industry.
In 2021, Tesla requested the Indian government to reduce import duties on electric vehicles. The company’s chief Elon Musk also met Prime Minister Narendra Modi during his visit to the US last month. After the meeting, Musk expressed confidence in bringing Tesla to India and announced plans to visit the country next year. He alluded to significant investment and strong commitment to establish a relationship with India.
India, the world’s third largest consumer of energy, offers a lucrative electric vehicle market, and US companies have been exploring alternative investment destinations amid rising tensions between China and the US.
