Tesla To Seek Incentives Under Existing Schemes, No Special Policy: Govt Official

The Indian government has clarified that it does not plan to create a separate policy for providing incentives to Tesla, the US-based electric car maker. Instead, Tesla can avail support measures under existing schemes like the Production-Linked Incentives (PLI) for the auto and advanced chemistry cells (ACC) sectors. The government has already introduced PLI schemes with significant outlays of Rs 18,100 crore for ACC battery storage and Rs 26,058 crore for the auto, auto-components, and drone industries.

A government official stated that Tesla can apply under the existing PLI for ACC batteries and that the same policy will apply to all companies. There is no intention to offer special treatment or create separate policies for a single company. Tesla's major battery supplier, Panasonic, has also expressed its interest in making batteries and has been advised to apply under the PLI scheme for ACC batteries.

Last month, representatives from Tesla visited India and met with officials from various ministries, including Commerce and Industry. Elon Musk, the Chief of Tesla Inc., also met with Prime Minister Narendra Modi during his visit to New York. Musk expressed confidence in Tesla's presence in India, stating that he plans to visit the country in 2024.

Currently, cars imported as completely built units (CBUs) into India attract customs duties ranging from 60 per cent to 100 per cent, depending on engine size and cost. Tesla had previously requested a reduction in import duties on electric vehicles (EVs) in India.

India, as the world's third-largest energy consumer, is positioning itself as an attractive destination for investment by US companies seeking alternatives amid the growing tensions between Beijing and Washington. However, for Tesla, the Indian government is treating it on par with other companies under existing incentive schemes rather than offering special privileges.