The central government has announced that any incentives offered to promote local production of electric vehicles will be available to both foreign and domestic investors. This comes after automakers in India raised concerns regarding potential import duty concessions for American carmaker Tesla.
According to senior government officials, Tesla has requested temporary tariff concessions in order to establish a manufacturing facility in India. However, New Delhi is opposed to granting any specific exemptions to individual companies. An official stated that the government's focus is on the industry as a whole rather than any particular company, emphasizing the strength of domestic companies in the sector. They also mentioned that any incentives provided will be equitable for both domestic and foreign investors.
Local carmakers have expressed concerns about extending concessional tariffs to Tesla before policy guidelines are solidified. They believe that this move will negatively affect the significant amount of investments they have already made or are planning to make in producing electric vehicles in the country.
A senior industry executive, who preferred to remain anonymous, stated that carmakers are worried that a reduction in import duty could give an unfair advantage to the American carmaker, which has not made concrete investments in the country yet. While the industry has not yet officially raised any objections with the government, there are concerns among several carmakers.
