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American Electric Vehicle (EV) maker, Tesla is all set for its official launch in India. The company has received the nod from the Indian Road and Transport Minister, Nitin Gadkari, who advised a reduction in import duties to test the demand for the company’s vehicles. 


At least three Indian auto-component suppliers, including Sona Comstar Ltd., Sandhar Technologies Ltd. and Bharat Forge Ltd. were in discussions with Tesla, according to reports. 


The EV-maker has ramped up its efforts to set up a service and repair ecosystem for its EVs in India. 


The company could rely on Indian manufactures for electrical, electronic and mechanical components including instrument panels, windshields, differential brakes, gears and power seats.


Presently, cars both electric and non-electric, priced below $40,000 are subject to a 40pc import tax in India, however for any vehicle more expensive than $40,000, the country will levy a 100pc import tax, thus increasing the landed price of imported Tesla EVs. 


The relaxation of taxes on EVs, as requested by Tesla CEO, Elon Musk, could benefit other automakers like Volkswagen and Hyundai to increase sales in India. Additionally, it could also boost the sale of auto-component suppliers in India, believe industry experts.  

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