Countries worldwide recognize the value clean technology has on their economy and communities, contributing to a safer future for all.
In transportation, there is room for innovation. According to Statista, transportation alone contributed about 14% of the total pollutants in the air when estimated in 2022, the second-largest source globally.
Automotive and energy company Tesla, notorious in the electric vehicle market, has set its sights on operating in India. While the Indian government welcomes the initiative, it comes with conditions, as Electrek has reported.
Tesla CEO Elon Musk and Indian Prime Minister Narendra Modi have agreed on a scheme to manufacture EVs in the country. The plan aims to appeal to global EV manufacturers and attract investment from them.
For EVs valued at $35,000 or more for a five-year time span, manufacturers will be able to lower import duties by as much as 15%, per Electrek. However, the deal doesn't come without requirements.
These requirements include a minimum investment of $500 million, establishing an EV manufacturing site in India within three years, and a limit of 40,000 total imported EVs.
The scheme signals a careful expansion for Tesla, according to Electrek. The company can use the opportunity to import vehicles, such as the Model Y, while building factories within the next few years.
Lowering import duty costs allow EVs in India to be accessible to citizens. Last year alone, Tesla reduced prices for EV Models Y and 3 in the U.S., with the latter totaling under $40,000 for a brand-new vehicle.
EVs save consumers money, both for utilities and health care costs. In the United States, states are phasing out new gas-powered vehicles by 2035. As EVs expand in India, more consumers can benefit from cleaner air and quieter roads, especially as EV sales are predicted to rise by 66% in the country.
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"We were anticipating that peak gasoline demand will be around 2040-2045 earlier, but going by the trend and the speed with which we are developing the ecosystem around EVs, the peak demand would be mid-2030s," Debasish Mishra of Deloitte India told Reuters.
The move from Tesla is met with some skepticism, as one user on Electrek sees the scheme as "a crack in the door, not much of an invitation."
Another user believes the approach is more rational, commenting, "This compromise allows Tesla to test the market for their offerings while planning to build if there's demand."
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