Many problems faced by Tesla cars before coming to India, you will have to sweat to charge it; Know the reason

Tesla is interested in retailing its vehicles in India but not in having a plant. Elon Musk, owner of electric vehicle manufacturing firm Tesla in America, is looking for relief from the present EV policy that is currently preventing him from importing ready vehicles from another country and retailing those in India. Musk had made a declaration that at first, he planned to explore the market by retailing imported vehicles in India, followed by opening a plant in India. But considering India's new EV policy, it is not that simple for businesses to retail vehicles in India without opening a manufacturing plant.

With the EV policy, a firm that is looking to sell vehicles in India will have to first set up a factory, which will be funded with the EV policy. The new EV policy also says that in order to be exempted from paying import duty on imported vehicles, a firm will have to invest a sum of at least Rs 4,150 crore ($500 million). In doing that, a firm will be allowed to import 8,000 units of vehicles a year at a 15% rate of concessional import duty. Along with that, it will be mandatory to bring in a revenue of Rs 10,500 crore in terms of 5-year investment. Apart from that, this kind of investment cannot be made just in order to buy a plot of land or a building.

If we look at the EV policy, it limits the investment in charging infrastructure in the country. If a foreign company is ready to invest in India, then it can spend only 5 percent of the total investment in creating the charging infrastructure. The policy has been designed in such a way that even if the company increases its investment, its investment in charging infrastructure will be a maximum of 5 percent of the total investment.

Understand it like this if a company invests Rs 1000 crore, then it will be able to invest only Rs 50 crore in building charging stations. That is, a good amount of investment can be attracted in the case of making electric vehicles, but the investment in charging stations will remain limited.

The sale of electric vehicles in the country is gaining momentum. In such a situation, the need of the hour is to create adequate charging infrastructure. Talking about Tesla, the company has developed its own charging infrastructure in many countries including America. In such a situation, Tesla's start in India may be difficult without adequate charging infrastructure. On the other hand, due to the EV policy in India, it will not be able to spend much in developing its own charging infrastructure.