Tesla Welcome To Make Electric Vehicles In India, But Not Must Import From China: Nitin Gadkari -By ASC

Nitin Gadkari said Tesla could make electric vehicles but should not import cars from China

New Delhi:

Road Transport and Highways Minister Nitin Gadkari on Tuesday said if US -based Tesla was ready to manufacture its electric vehicles (EVs) in India then ‘no problem’ but the company could not import cars from China.

In an interactive session at the Raisina Dialogue, Mr Gadkari further said India is a huge market and there is huge potential for all electric vehicles.

“If Elon Musk (CEO of Tesla) is willing to manufacture in India then no problem … Come to India, start manufacturing, India is a huge market that they can export from India,” he said.

The road and highway transport minister said his request to Mr Musk was to come and make production in India.

“But if he wants to manufacture in China and sell in India, then it cannot be a good proposal for India,” Mr Gadkari said.

Last year, the heavy industry ministry also asked Tesla to start producing its iconic electric vehicles in India before any tax concessions could be considered.

Currently, cars imported as complete built units (CBUs) attract customs duties of between 60-100 percent, depending on engine size and cost, insurance and transportation value (CIF) of less or more than $ 40,000.

Last year, in a letter to the roads ministry, the U.S. firm had stated that an effective import tariff of 110 percent on vehicles with a customs value in excess of $ 40,000 was “prohibited” to zero -emission vehicles.

It has asked the government to standardize electric car tariffs to 40 per cent regardless of customs value, and withdraw the social welfare surcharge of 10 per cent for electric cars.

It has stated that these changes will enhance the development of India’s EV ecosystem and the company will make significant direct investments in sales, service and charging infrastructure; and significantly increased revenue from India for its global operations.

The company argued that the proposal would not have a negative impact on the Indian automotive market as no Indian OEM currently manufactures cars (EVs or ICEs) with ex-factory prices exceeding $ 40,000 (around Rs 30.6 lakh) and only 1-2 per cent cars sold in India (EV or ICE) have a former factory/customs value in excess of $ 40,000.

(Except for the headline, this story has not been edited by AGRASMARTCITY staff and is published from a syndicated feed.)


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