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Tesla's New Launch Still in India's Roadblocks

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Tesla cofounder and CEO, Elon Musk, informs about the difficulties faced by the US-based EV (Electric Vehicle)-maker for launching car in India, and the company is working with the government to overcome obstacles.

“Still working through a lot of challenges with the government,” Musk says.

Tesla urged Prime Minister Narendra Modi's office to slash import taxes on EVs before it enters the market and the company is ratcheting up demands that faced objections from some Indian automakers.

Musk replied to Pranay Pathole, who asked, “Yo @elonmusk any further update as to when Tesla's will launch in India? They're pretty awesome and deserve to be in every corner of the world.”

Tesla is planning to begin selling imported cars in India this year, but says that taxes in the country are among the highest in the world. Tesla’s request for tax cuts prompted objections from several local players, who say such a move would deter investment in domestic manufacturing.

Tesla wants to launch its cars soon in India, but Indian 'import duties are the highest in the world by far of any large country and Tesla 'factory in India is quite likely' but at the condition that its imported cars first succeed in the country

Musk had also raised his uncertainties about launching EVs in India due to the high import duties. He hopes for a 'temporary tariff relief for electric vehicles' as Tesla continues to lobby hard to reduce the taxes before it officially launches any cars in India.

India currently demands customs duty ranging from 60 percent to 100 percent on imported cars. India imposes 100 percent import duty on fully imported cars with CIF (Cost, Insurance and Freight) value over $40,000, while 60percent duty is imposed on cars that cost less than the amount.

Recently Musk said, “Tesla wants to launch its cars soon in India, but Indian 'import duties are the highest in the world by far of any large country and Tesla 'factory in India is quite likely' but at the condition that its imported cars first succeed in the country.”

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