After Maharashtra, Telangana, Punjab invites Tesla to set shop

Sidhu tweeted that Punjab model will make Ludhiana the hub of Electric Vehicles and Battery Industry and will be given single window clearance for such investments which will bring new technology with it and create green jobs in Punjab while protecting the environment.

Musk, who is known for his quick response to his followers on Twitter, was prompt in replying: "Still working through a lot of challenges with the government".

His response came after a Twitter user identified as Pranay Pathole, had on January 13 asked Musk: "...any further update as to when Tesla's will launch in India?"

Telangana minister KT Rama Rao offered Musk support to set shop in Telangana, a day after auto manufacturer's tweet.

Maharashtra Water Resources Minister Jayant Patil, in a reply to Musk's tweet, said, "Maharashtra is one of the most progressive states in India. We will provide you all the necessary help from Maharashtra for you to get established in India."

"We invite you to establish your manufacturing plant in Maharashtra," the Nationalist Congress Party leader added.

The Tesla boss complained that "high import duties" imposed by the Government of India on completely build units of foreign automobiles would restrict the sales of its vehicles as well as that of electric vehicles in general.

In July 2021, Tesla wrote to ministries in the Narendra Modi government, including transport and heavy industries ministries, as well as government think tank Niti Aayog making the pitch that cut down import tax on fully assembled electric cars to 40 percent would be more appropriate.

High duties would also make it difficult to make an investment in India, the company has said.

Currently, the tax rate is 60 percent for cars priced below $40,000 and 100 percent for cars priced above $40,000.

According to Tesla’s U.S. website, only one model - the Model 3 Standard Range Plus - is priced below $40,000.

In the past, Union government officials have said that Tesla can take advantage of the production-linked incentive schemes for the sector, including the one for advanced chemistry cells for electric vehicles.