Commerce Minister Piyush Goyal disclosed on Tuesday that he visited Tesla's cutting-edge manufacturing facility located in Fremont, California. This visit coincides with reports indicating that the central government is contemplating a request from Tesla, led by Elon Musk, to reduce tariffs for imported electric vehicles (EVs).
Goyal posted on X that it was "extremely delighted to see talented Indian engineers and finance professionals working at senior positions and contributing to Tesla’s remarkable journey to transform mobility”.
“Also proud to see the growing importance of Auto component suppliers from India in the Tesla EV supply chain. It is on its way to double its components imports from India. Missed Elon Musk’s magnetic presence and I wish him a speedy recovery,” the Union Minister added.
Goyal posted on X that it was "extremely delighted to see talented Indian engineers and finance professionals working at senior positions and contributing to Tesla’s remarkable journey to transform mobility”.
“Also proud to see the growing importance of Auto component suppliers from India in the Tesla EV supply chain. It is on its way to double its components imports from India. Missed Elon Musk’s magnetic presence and I wish him a speedy recovery,” the Union Minister added.
Minister Goyal and Elon Musk were slated to meet during the Commerce Minister's visit to the United States. This meeting comes several months after the founder of SpaceX and Tesla met with Prime Minister Narendra Modi in the U.S., expressing a keen interest in making substantial investments in India.
According to a recent report from the Financial Times, citing sources, Tesla has formally requested the Indian government to grant an initial tariff concession. This concession is sought to counterbalance India's high customs duties, which currently stand at 70 per cent for cars priced under $40,000 and 100 per cent for cars exceeding $40,000.
"Their view has always been that they need some tariff concessions at least in the interim period. It would have some kind of sunset clause," one of the officials was quoted as saying in the report.
Tesla has reportedly requested a tariff concession as a prerequisite for establishing a manufacturing plant in India. This reduced tariff would be applicable to all electric vehicle (EV) manufacturers operating in the country.
The current consideration within the government is to implement a reduced tariff of 15 per cent for EVs across all price ranges. However, it's important to note that this policy has not yet received final approval.
In September, reports surfaced indicating Tesla's plans to construct a factory for battery storage in India. The company submitted a proposal to the government for the same. Tesla aims to contribute to India's battery storage capabilities by introducing its 'Powerwall' technology. Elon Musk is also working towards establishing a Tesla supply system in India, further solidifying the company's presence in the country.
(With Agency Inputs)
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