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Elon Musk Seeks Import Duty Exemption to Sell Teslas in India

The Tesla founder wants import duty relief to sell the cars in India, before they set up a local plant. 

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Elon Musk has set his eyes on entering the Indian market with his Tesla range of cars, but before he can dream of manufacturing them in the country, he wants to be able to sell them first.

On Tuesday, Musk confirmed that he’s in discussions with the Indian government for temporary relief on import duty. The Tesla founder was responding to someone on Twitter, who asked him if Tesla’s launch in India has been delayed. To which Musk had this to say:

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Seems like Musk has followed Apple’s playbook in looking for exemption from import penalties/restriction, paving the way for Tesla cars to be sold in the country.

However, unlike Apple, Musk seems to be aware that the relief will be only granted if he has a roadmap to locally manufacture Tesla in the country. It’s likely that India will play a big part in how Tesla’s future shapes up for Musk. What works in favour of both parties is their support for solar energy, which is available in abundance in the country.

Also Read: As Solar Energy Price Falls, Indian Manufacturers Lose to China

This isn’t the first time Musk has expressed interest in doing business with the Indian government. His last tweet did cause some confusion, where Musk wrongly suggested he needs to locally source parts to sell in the country, as per the FDI in retail regulations.

That confusion was quickly corrected by the Twitter handle of Make in India.

Also Read: Indian Govt Gives Elon Musk a Crash Course on Make in India

To make things interesting, Paytm founder Vijay Shekhar Sharma has also sent in a query to Musk asking whether he can get a right-hand drive Tesla Model X imported to India (will readily pay the duties).

India is excited to get Tesla on board. After all, it could kickstart their mission to go all electric by 2030.

Also Read: India to Sell Only Electric Cars by 2030: Ambitious or Achievable?

After seeing Apple get some leverage, will the government budge twice, for the sake of fulfilling the Make in India project? Let’s wait and watch.

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