CompaniesTesla IncFollowBENGALURU, Nov 24 (Reuters) – Tesla (TSLA.O) is prepared to invest up to $2 billion to establish a factory in India if the government reduces import duty on its vehicles to 15% for the first two years of operations, as reported by the Economic Times on Friday.Reuters previously reported in August that India is developing a new EV policy to significantly decrease import taxes to as low as 15% – compared to the current 100% on cars priced above $40,000 and 70% for others – in exchange for a commitment to local manufacturing.The electric vehicle (EV) manufacturer led by Elon Musk is willing to invest up to $500 million if the government approves the reduced duty for 12,000 vehicles, and up to $2 billion if the concession is for 30,000 vehicles, according to the ET report, which cites unnamed sources.The government is evaluating the feasibility of Tesla’s proposal to invest $2 billion but aims to limit the number of cars imported under a lower duty compared to Tesla’s proposal, as stated by the Economic Times.Tesla, the department for promotion of industry and internal trade, ministry of heavy industries, ministry of road transport & highways, and the ministry of finance have not yet responded to Reuters’ requests for comment.Reporting by Rama Venkat in Bengaluru; Editing by Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles. Acquire Licensing Rights, opens new tab
Link from www.reuters.com
