Tesla in India | States inviting Tesla to set up EV manufacturing plants A number of Indian states have rolled out the red carpet for Elon Musk’s American electric vehicle company, Tesla, after he told a netizen that Tesla is facing challenges in getting clearance to launch its vehicles in India. Tesla had last year sought a reduction in import duties so that its company’s high-performance electric cars can begin to sell in India.
January 17, 2022 / 05:18 PM IST
A number of Indian states have rolled out the red carpet for Elon Musk’s American electric vehicle company, Tesla, after he told a netizen that Tesla is facing challenges in getting clearance to launch its vehicles in India. On January 13, responding to a tweet on the company’s plans to launch its products in India, Musk said, “Still working through a lot of challenges with the government”. The US-based company is looking to launch its products in India. Telangana, Maharashtra, West Bengal and Punjab have invited Tesla founder and CEO Elon Musk to set up his business in their state. Tesla had last year sought a reduction in import duties so that its company’s high-performance electric cars can begin to sell in India. (Image: AP)
Last year, the states of Karnataka, Gujarat, Andhra Pradesh and Tamil Nadu, apart from Maharashtra and Telangana, had formally reached out to Tesla to set up a plant. The company had also received formal approval for seven of its cars to begin production. However, Tesla has complained that "high import duties" imposed by the Government of India on completely build units of foreign automobiles would restrict the sales of its vehicles as well as that of electric vehicles in general. The company said that the high duties would also make it tougher to commit to an investment in India. The country levies a 60 percent import duty on electric vehicles that cost $40,000 or less and a 100 percent for those priced above the threshold to protect the domestic industry. As the standoff over import duties continues between the Centre and Tesla, let’s take a look at the state government who responded to Musk’s remark and invited the company to set up business in their states.
On January 15, Telangana industry and commerce minister KT Rama Rao appealed to the Tesla CEO to consider investing in Telangana, which he described as a “top notch business destination in India”. "Will be happy to partner Tesla in working through the challenges to set shop in India/Telangana. Our state is a champion in sustainability initiatives (sic)," Rao added.
Md Ghulam Rabbani, the minister for minority development and madrasa education in the West Bengal government, also rolled out red carpet for Tesla. Retweeting Musk’s tweet, Rabbani said, “Drop here, we in West Bengal have best infra & our leader @MamataOfficial has got the vision. Bengal means Business."
Following Telangana and West Bengal, Maharashtra State Water Resources Minister Jayant Patil also invited Elon Musk to invest in the state. On January 16, Patil replied to Musk’s tweet and invited him to establish a manufacturing plant in Maharashtra. "Maharashtra is one of the most progressive states in India. We will provide you all the necessary help from Maharashtra for you to get established in India. We invite you to establish your manufacturing plant in Maharashtra," Patil tweeted.
Punjab also joined the club and extended invitation to the company. Replying to Musk’s tweet, Punjab Congress Chief Navjot Singh Sidhu also asked the company to set up manufacturing units in the state. He said, “Punjab Model will create Ludhiana as hub for Electric Vehicles & Battery Industry with time bound single window clearance for investment that brings new technology to Punjab, create green jobs, walking path of environment preservation & sustainable development”.