The Indian government had its first consultation meeting with key participants in the automotive industry, including Tesla.

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India Holds Consultation Meeting with Auto Industry Including Tesla

Published on April 19, 2024

The Indian government convened the first consultation meeting with key players in the automobile industry, including Tesla representatives, to establish guidelines for operationalizing the new electric vehicles (EV) policy released recently.

Participants including Tesla and Purpose of the Meeting:

Industry and official sources revealed that the meeting included officials from the Ministry of Heavy Industries (MHI), the Finance Ministry, and major car manufacturers such as Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Volkswagen, Mercedes, Toyota, and Tesla. The aim was to develop guidelines for implementing the EV policy.

The meeting focused on drafting guidelines to clarify investments in EV manufacturing in India. These guidelines are crucial for the growth of the EV sector within the broader automotive industry, which is expected to expand significantly in the coming years.

Tesla Involvement and Tariff Concessions:

Tesla’s participation in the meeting follows India’s decision to ease import duties for a limited number of EV imports, provided manufacturers invest a minimum of Rs 4,150 crore in setting up facilities in India. Tesla had previously sought tariff concessions to establish a manufacturing plant in India.

Tesla CEO Elon Musk is anticipated to meet Prime Minister Narendra Modi and engage with various Indian startups during his visit to India.

Details of the New EV Policy:

The new EV policy allows the import of completely built-up (CBU) cars at a 15% import duty, fulfilling Tesla’s request for reduced import duties on fully assembled cars.

However, the policy imposes a cap of 8,000 imported EV passenger cars (e-4W) per year at the reduced duty rate, with provisions for carrying out unutilized annual import limits.