Revenue Secretary: FinMin does not contemplate Tesla tax exemptions

Revenue Secretary Sanjay Malhotra stated on Thursday that the Ministry of Finance is not contemplating any duty exemptions for Tesla Inc.

Elon Musk, CEO of Tesla, stated last month that Indian Prime Minister Narendra Modi was pressuring the automaker to make a “significant investment” in the country, adding that an announcement of this nature was imminent.

In previous negotiations between the US automaker and the Indian government, the US automaker sought customs duty exemptions for the import of its electric vehicles, which India rejected.

“At this time, the Department of Revenue is not actively considering a duty exemption for Tesla,” Malhotra told Reuters on Thursday.

In the meantime, government sources have verified to Business Today TV that the iconic company of billionaire Elon Musk has submitted a proposal to establish manufacturing operations in India.

According to sources, the company intends to construct a gigafactory with an annual production capacity of approximately 500,000 electric vehicles.

Tesla intends to introduce a vast selection of electric vehicles and establish a robust charging infrastructure in India.

If Tesla’s plans are realized, the company will become India’s third largest automaker, behind Maruti and Hyundai.

The Economic Times reported earlier on Thursday that Tesla is considering an annual capacity of five lakh vehicles and a starting price of Rs 20 lakh.