Government Excludes Incentives for Tesla, the US-based Electric Car Maker

According to a government official, there are no current plans to create a distinct policy exclusively providing incentives to the US-based electric car manufacturer, Tesla. The official stated that Tesla is welcome to avail of support measures under the existing schemes, such as the Production-Linked Incentives (PLI) for auto and advanced chemistry cells (ACC).

The government has already initiated the PLI schemes, with a budget of Rs 18,100 crore for advanced chemistry cell (ACC) battery storage and Rs 26,058 crore for the auto, auto-components, and drone industries. The official emphasized that the policies applicable to other companies are also open for Tesla to apply, and the government aims to maintain a level playing field, avoiding separate policies for individual companies.

Additionally, representatives from Panasonic, Tesla’s main battery supplier, have expressed their interest in manufacturing batteries in India. The government has suggested that they apply under the PLI scheme for ACC batteries.

Recently, the government announced the re-bidding of production-linked incentives for 20 GWh of advanced chemistry cell manufacturing. The Ministry of Heavy Industries will conduct a stakeholder consultation with industry representatives on July 24, seeking their inputs and suggestions for the re-bidding process of the remaining 20 GWh capacity.