Tesla did not apply for India’s PLI incentive schemes

Tesla Tilburg
Credit: Tom Bunning

Last week India’s government announced a list of 20 companies that applied and qualified for their Production Linked Incentive (PLI) schemes.

One of the schemes was created to boost manufacturing of eco-friendly vehicles in the country, providing incentives in the range from 8% to 18% of the sales value of locally manufactured vehicles or components.

Another scheme provides incentives to companies involved in advanced chemistry cell manufacturing.

Conspicuously absent from the list was Tesla, which has been negotiating with local officials to lower import taxes on electric vehicles (EVs) for more than a year.

Today it was confirmed Tesla did not apply for the PLI schemes. A government official told The Economic Times that Tesla will not provide any local manufacturing plans, something which the government requires before committing to reducing import duties on EVs.

“They (Tesla) have not applied. Tesla can avail of benefits under the PLI schemes for the auto sector, for making advanced chemistry cells but the company wants concessional duties without showing any commitment to produce here. The government wants to enable Tesla to manufacture vehicles in India. But they have to first submit firm business plans,” the official said.

For their part, Tesla will not commit to manufacturing in India until it can sell enough imported vehicles in the country to warrant setting up a facility in the country.

But it does not make financial sense for them to do so when India adds duties of as much as 100% on cars worth more than $40,000.

And so the stalemate continues as neither side appears willing to budge on their respective positions, with Tesla fans in India losing out.

Discussions between Tesla and India over tax breaks have reached an impasse

Source: The Economic Times

About Darryn John 4433 Articles
Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca