Tesla in Talks with Government Over temporary Duty Relief


Tesla aiming to get a temporary import duty relief till a local factory is built; targets to bring Model 3 soon

American electric vehicle manufacturer Tesla seems eager to launch its Model 3 in India as soon as possible. Tesla boss Elon Musk reveals that the company is in talks with Indian government to avail a temporary import duty relief, which would enable the company to import and sell CBU products here till a local plant is built in the country.

Currently India imposes a 60% import duty on completely built (CBU) electric vehicles priced lower than $40,000 (Rs. 25,79,620). If the price of the EV is more than that, it is draws an import duty of 100%. On the other hand, locally assembled CKD electric vehicles draw customs duty of just 10%.


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Now, with Tesla eager to roll out its upcoming EV Model 3 and no assembling plant set up yet, the EV maker wants the government of India to exempt it from paying 60% import duty. The Model 3 would be priced at $35,000 (Rs. 22,57,167) before any incentive. So, if government of India considers Tesla’s appeal and gives it green signal then we might see the Model 3 arriving here later this year as a CBU.

Currently, Mahindra electric leads the EV segment of Indian car market with products like e2o Plus, e-Verito. Just a few days ago, Mahindra box Anand Mahindra threw an open challenge to the Tesla. It seems the American EV maker is responding according. No wonder, with arrival of the Model 3 here, India’s ambitious electric mobility dream will get a boost.


Also read: 20+ Expected Upcoming Cars at 2018 Auto Expo

In the meantime, Tesla has announced that it will offer test drive for the Model 3 compact sedan in a few days before the first batch roll out later this year. The company has updated its official website with the notification and it also said that the current reservation holders will get priority to test the Model 3.

Tesla Model 3 Gallery

Source: Twitter