Bengaluru: Tesla is ready to invest up to $2 billion to set up a factory in India if the government cuts import duty on its vehicles to 15% for the first two years of operations, the Economic Times reported on Friday.
Reuters reported in August that India is working on a new EV policy to slash import taxes to as low as 15% – compared to the current 100% on cars priced above $40,000 and 70% for the rest – in exchange for a commitment to some local manufacturing.
The Elon Musk-led electric vehicle (EV) maker is willing to invest up to $500 million if the government approves the reduced duty for 12,000 vehicles and up to $2 billion if the concession is for 30,000 vehicles, the ET report said, citing unnamed sources.
