Photo: Autocar Professional 

Tesla's proposal to reduce import duties in India has been supported by several government ministries. Building a charging infrastructure and purchasing local auto parts could be a sine qua non of the deal.

Several Indian government ministries have backed Tesla's proposal to reduce import duties on Completely Built-up Units (CBU). Among these ministries are the road transport ministry, department of promotion industry and internal trade and NITI Aayog, according to the Economic Times. At the moment, only the Ministry of Heavy Industry is opposed to such a deal. Local big players in the auto industry are also opposed to the change, although Volkswagen has sided with Tesla. The final decision rests with the Ministry of Finance.

The publication also reports that officials have indicated that tariffs will be reduced, but with certain conditions. Among these may be the mandatory creation of infrastructure, which includes the construction of charging stations for electric vehicles. This should benefit all electric vehicle owners in the country.

In addition, a clause may be added on the mandatory purchase of some components directly from India, which probably will not be a problem for Tesla. Recently it became known that the manufacturer is looking for critical electrical, electronic, and mechanical components in India. The parts list includes instrument panels, windshields, differential brakes, gears, and power seats. Tesla has reportedly already partnered with several Indian companies including Sona Comstar Ltd., Sandhar Technologies Ltd., and Bharat Forge Ltd. Perhaps the company has already begun preparations for the fulfillment of conditions that may or have already been set for it.

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