Advertisement
Singapore markets open in 4 hours 59 minutes

  • Straits Times Index

    3,292.93
    -3.96 (-0.12%)
     

  • S&P 500

    5,127.79
    +63.59 (+1.26%)
     

  • Dow

    38,675.68
    +449.98 (+1.18%)
     

  • Nasdaq

    16,156.33
    +315.33 (+1.99%)
     

  • Bitcoin USD

    63,885.30
    -70.10 (-0.11%)
     

  • CMC Crypto 200

    1,329.74
    +52.76 (+4.13%)
     

  • FTSE 100

    8,213.49
    +41.34 (+0.51%)
     

  • Gold

    2,310.10
    +1.50 (+0.06%)
     

  • Crude Oil

    77.99
    -0.12 (-0.15%)
     

  • 10-Yr Bond

    4.5000
    -0.0710 (-1.55%)
     

  • Nikkei

    38,236.07
    -38.03 (-0.10%)
     

  • Hang Seng

    18,475.92
    +268.82 (+1.48%)
     

  • FTSE Bursa Malaysia

    1,589.59
    +9.29 (+0.59%)
     

  • Jakarta Composite Index

    7,134.72
    -7,117.42 (-49.94%)
     

  • PSE Index

    6,615.55
    -31.00 (-0.47%)
     

Tesla Eyes Indian Market As Government Nears Policy Shift On Import Duties

Shomik Sen Bhattacharjee
·2-min read

This story was first published on the Benzinga India portal.

Tesla Inc (NASDAQ: TSLA) might soon establish its presence in India with the local government reportedly finalizing a policy that would offer Tesla reduced import duties for electric cars priced over INR 3 million (approximately $36,000). This concession, possibly lasting 2-3 years, is set to replace the initial plan of bank guarantees for Tesla’s proposed investment in an Indian electric vehicle factory, the Economic Times said in a report.

What Happened? India’s current import duty structure is hefty, charging 100% on cars valued over $40,000 and 60% for those below. Tesla has shown interest in investing up to $2 billion, provided it gets a favorable import duty rate of 15% for the initial two years of its operation.

ADVERTISEMENT

This move aligns with the Indian government’s aspirations to encourage foreign automakers to start local manufacturing, boosting employment and reducing electric vehicle prices through domestic production. The government’s strategy involves temporary duty reductions backed by bank guarantees. These guarantees are a safety net to ensure timely investments and local factory setups.

See also: Apple's Tablet PC Shipments Decline By 17%, But Still Ahead Of Samsung, Lenovo

The counter-charge: However, this potential leniency towards Tesla has prompted a cautious stance from Indian automakers. Although no formal objections have been raised, there’s an underlying concern about the competitive edge this might give Tesla, which hasn’t yet committed to a concrete investment plan in India.

Indian industry leaders, such as Mahindra & Mahindra’s Anish Shah, have expressed the need for equitable treatment. At the World Economic Forum in Davos, Shah emphasized the importance of foreign EV makers investing in India to avoid turning the country into just an importer. Indian companies like Tata Motors and M&M are already contributing to the local EV market, underscoring the potential for a robust and competitive domestic industry.

Photo Courtesy: franz12 On Shutterstock.com

Read Next: ChatGPT Maker OpenAI Wants To Make More Inroads In India, Its 2nd Largest Market

"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!

Get the latest stock analysis from Benzinga?

This article Tesla Eyes Indian Market As Government Nears Policy Shift On Import Duties originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.