It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will lead to fresh investment of over ₹42,500 crore
Mahendra Nath Pandey, India’s Heavy Industries Minister, is hopeful that the recently launched PLI scheme for the automobile sector will attract US-Based Tesla to set u a manufacturing center in India.
“Tesla will definitely be attracted to this scheme…I am hopeful,” Pandey was quoted by PTI.
It is to be noted here that Tesla has already requested cuts in taxes related to imorting electric vehicles in the country. Tesla’s Elon Musk has requested the government of India to revise tax figures from 100 per cent to 40 per cent.
There were earlier reports noting that Tesla’s call for lowering import duties on electric vehicles was backed by various government institutions. These included the likes of road transport ministry, NITI Ayog, and the department for promotion of industry and internal trade.
The Society of Indian Automotive Manufacturers (SIAM) had earlier explained how the concessions will only help ultra rich. SIAM had also noted that the economically weaker sections of the society were already paying 28 per cent tax on buying two wheeler which are nominally priced. The country, at the moment, levies 110 per cent duty on importing electric vehicles that are priced $40,000.
“We want to do so (launch cars in India), but import duties are the highest in the world by far of any large country. Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India,” read one of Musk’s tweets.
It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will lead to fresh investment of over ₹42,500 crore, incremental production of over ₹2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs.