No problem in Tesla producing EVs in India but must not import vehicles from China Gadkari
New Delhi Apr 26 PTI Union minister Nitin Gadkari on Tuesday said if the US-based Tesla is ready to manufacture its electric vehicles in India then there is no problem but the company must not import cars from China In an interactive session at the Raisina Dialogue Gadkari further said India is a large market and there is a huge potential for all electric vehicles If Elon Musk Tesla CEOis ready to manufacture in India then there is no problem Come to India start manufacturing India is a large market they can export from India he said The road transport and highways minister said his request to Musk is to come and manufacture in India But if he wants to manufacture in China and sell in India then it cannot be a good proposition for India Gadkari said Last year the heavy industries ministry had also askedTesla to first start manufacturing its iconic electric vehicles in India before any tax concessions can be considered At present cars imported as completely built units CBUs attract customs duty ranging from 60-100 per cent depending on engine size and cost insurance and freight CIF value less or above USD 40000 Last yearin a letter to the road ministry the US firm had stated that the effective import tariff of 110 per cent on vehicles with customs value above USD 40000 is prohibitive to zero-emission vehicles It had requested the government to standardize the tariff on electric cars to 40 per cent irrespective of the customs value and withdraw the social welfare surcharge of 10 per cent on electric cars It had stated that these changes would boost the development of the Indian EV ecosystem and the company will make significant direct investments in sales service and charging infrastructure and significantly increase procurement from India for its global operations The company had argued that these proposals would not have any negative impact on the Indian automotive market as no Indian OEM currently produces a car EV or ICE with ex-factory price above USD 40000 around Rs 306 lakh and only 1-2 per cent of cars sold in India EV or ICE have ex-factorycustoms value above USD 40000 PTI BKS MR
New Delhi Apr 26 PTI Union minister Nitin Gadkari on Tuesday said if the US-based Tesla is ready to manufacture its electric vehicles in India then there is no problem but the company must not import cars from China In an interactive session at the Raisina Dialogue Gadkari further said India is a large market and there is a huge potential for all electric vehicles If Elon Musk Tesla CEOis ready to manufacture in India then there is no problem Come to India start manufacturing India is a large market they can export from India he said The road transport and highways minister said his request to Musk is to come and manufacture in India But if he wants to manufacture in China and sell in India then it cannot be a good proposition for India Gadkari said Last year the heavy industries ministry had also askedTesla to first start manufacturing its iconic electric vehicles in India before any tax concessions can be considered At present cars imported as completely built units CBUs attract customs duty ranging from 60-100 per cent depending on engine size and cost insurance and freight CIF value less or above USD 40000 Last yearin a letter to the road ministry the US firm had stated that the effective import tariff of 110 per cent on vehicles with customs value above USD 40000 is prohibitive to zero-emission vehicles It had requested the government to standardize the tariff on electric cars to 40 per cent irrespective of the customs value and withdraw the social welfare surcharge of 10 per cent on electric cars It had stated that these changes would boost the development of the Indian EV ecosystem and the company will make significant direct investments in sales service and charging infrastructure and significantly increase procurement from India for its global operations The company had argued that these proposals would not have any negative impact on the Indian automotive market as no Indian OEM currently produces a car EV or ICE with ex-factory price above USD 40000 around Rs 306 lakh and only 1-2 per cent of cars sold in India EV or ICE have ex-factorycustoms value above USD 40000 PTI BKS MR
