Tesla’s Elon Musk has some bad news for Indian buyers

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Tesla’s Elon Musk disappointed many Indian buyers after he hinted that Tesla won’t be coming to India soon as the country lacks an ecosystem for the supply of electric vehicle components.
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Musk responded to a query on micro-blogging site Twitter and indicated his plans for India.

Twitter user Avinash Singh asked Musk on Tesla's Indian plans, to which Musk tweeted: "Maybe I'm misinformed, but I was told that 30 per cent of parts must be locally sourced and the supply does not yet exist in India to support that.”

This statement comes after Musk said Tesla is likely to introduce its products in India sometime in the summer of 2017.

Sugato Sen, deputy director general, Society of Indian Automobile Manufacturers, told ET local sourcing requirements do not exist for auto firms.

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He added that vehicle makers can import cars valued at less than $40,000 by paying an import duty of 60 per cent. For cars valued over $40,000, the duty stands at 100 per cent. "Semiknocked down units and completely-knocked down units attract import duty of 30 per cent and 10 per cent respectively," Sen told ET.

Tesla’s tweet also was on contrast to government’s claim. A government official told ET on Monday that the offer to Tesla was unconditional and there was no stipulation on local sourcing.

"We've offered them all help to support manufacturing here. The minister wants India to be Tesla's Asia manufacturing hub and the company was conveyed that during his visit to Tesla factory last year. We'll facilitate whatever help they need," a senior roads ministry official told ET.

Tesla's Model 3 will sell at $35,000 in the United States. Model 3, the car, the third model after Model S and Model X had several Indian car enthusiasts make an advance booking of $1,000.

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