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Volkswagen Is Now Also Calling For Lower Import Duties In India Which Could Help Tesla

Volkswagen is also calling for lower import duties for cars being imported into India. The Indian government has made it clear they won’t be lowering import duties. The increased pressure could make India re-think their position, but time will tell.

Tesla has been eager about starting their operations in India. Over the past few months, Tesla has taken steps to make the goal of selling a lot of cars in India a reality. Tesla has made key hires to help market the brand in India. They have scouted sites for showrooms and factories. All of the work that Tesla has put in has yielded some good results, and Tesla wants to get off to a quick start in India. However, the government decided that they didn’t want to lower the import fees. As stated before, this situation hasn’t changed Tesla’s feelings about deciding to do business in India, but it will certainly prevent Tesla from doing as well at first if the import duties aren’t lowered.

Volkswagen calls for lower import duties

Volkswagen India’s managing director of Skoda has given his opinion. “The market for EVs has to be big enough for investments to come in, and for that, we shouldn’t be placing barriers,” Boparai stated.

Tesla is in a different situation than Volkswagen. Tesla is simply trying to get off the ground in India. Tesla not only needs lower import duties, but they may also need other incentives that will last for many years.

Other brands have an opinion

Mercedes-Benz and Hyundai also support cutting the import duties. The only notable company that opposes the cuts is Indian automaker Tata.

India likely to be slower to adopt EVs than Europe and China

India might be slower to adopt EVs and one of the reasons why is the lack of charging infrastructure. Boparai and others have pointed out that EVs won’t sell in India unless there is demand for them. One way to increase demand is to lower the import duties. This will make it so Tesla can charge lower prices.

When it comes to Tesla, they have had to raise its prices on their cars a lot lately due to supply shortages. High import duties could make it difficult for Tesla to make meaningful profits if other issues are also factored in.

This effort has a chance of paying off

VW and Tesla’s efforts have a chance of paying off. This would likely help both of these companies. VW and Tesla are competitors due to the fact VW has an emerging EV lineup. However, these two companies are worried about individual success.

Image: Tesla

Daniel Cappo reports Tesla developments at Torque News. He has had a passion for cars ever since age five when his grandparents let him drive their old golf cart around their property in Upstate NY. He has attended numerous auto shows, and even got the chance to drive a Ferrari California on the track. Ever since Tesla opened up a dealership at his local mall, he's been an avid follower of their cars and technology. Dan has a B.S. in Public Communication from U Vermont. Follow Daniel on Twitter and LinkedIn for daily Tesla News.