Amid the tussle between the US-based EV maker, Tesla, and the government of India regarding cuts in import duty, another development that has inched away the hopes of Indian car buffs to drive a Tesla. It has come to light that Tesla is not applying for the incentives under the Rs.44,000 Production-linked Incentive (PLI) scheme.
The PLI scheme for the auto sector focused on promoting the research, development, and production of advanced automotive technology products such as electric vehicles and hydrogen-fuel vehicles. In September 2021, heavy industries minister Mahendra Nath Pandey showed hope that the EV maker will be “definitely attracted to this scheme," reported PTI.
A senior government official has now revealed that the EV maker has not yet applied for the PLI scheme-related incentives. “They have no applied. Tesla can avail of benefits under the PLI scheme for the auto sector, for making advanced chemistry cells, but the company wants concessional duties without showing any commitment to produce here," the official told Economic Times. The official also added that the government is keen to enable Tesla to build their EVs in India, but before the EV maker has to “submit a firm business plan first."
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The PLI scheme is laden with incentives up to 18 percent to encourage auto and parts makers to deepen localisation of the supply chain and to address cost disabilities. As of now, 20 applicants have been registered for the PLI auto scheme, including the likes of Ashok Leyland, Hyundai Motor India, Ola Electric, and Mahindra & Mahindra.
Currently, the biggest hindrance for companies like Tesla is the heavy import duty that India imposes on foreign vehicles. India’s import duty is set at 100 percent on cars with a value of more than $40,000 and 60 percent for cars that are priced below that. Tesla is still grappling with such stringent import policies, which the CEO, Elon Musk, himself addressed through a tweet.
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