PLI scheme may attract Tesla to establish production base in India

By VARINDIA - 2021-09-18

PLI scheme may attract Tesla to establish production base in India

Heavy Industry Minister Mahendra Nath Pandey indicated that the Production Linked Incentive (PIL) for the auto sector could interest US electric car major Tesla to set up its industrial base in India.

 

The Union Cabinet recently authorized a 25,938-crore PLI scheme for the auto sector which aims to promote the manufacturing of advanced automotive technology products like electric and hydrogen-fuel vehicles.

 

"The scheme will give a huge boost to the auto sector and make it globally competitive. We have received huge positive responses from all the industries on the scheme," Pandey said.

 

Tesla CEO Elon Musk said to have agreed on launching its EV’s in India considering the fact that the country’s import duties are said to be the highest in the world. The centre has agreed to compromise with Tesla’s appeal in tax reduction from 110% to 40%.

 

Tesla recently received a thumbs up to make or import four of its models, which have been confirmed to be driveable on Indian roads.


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