Union minister Nitin Gadkari and Elon Musk, CEO of Tesla Motors. Photograph:( Twitter )
Union minister Nitin Gadkari on Friday said he has asked US-based Tesla several times to manufacture its iconic electric vehicles in India, while assuring that all support will be provided by the government to the company.
Union minister Nitin Gadkari claimed on Friday that Tesla has been told not to sell vehicles made in China in India and to instead make them here.
He also encouraged the Elon Musk-led firm to export automobiles made in India.
Gadkari went on to say that Tata Motors’ electric automobiles are no less good than Tesla’s electric cars.
Tesla has requested that import taxes on electric cars (EVs) be reduced in India.
“I have told Tesla that you don’t sell electric cars in India that your company has manufactured in China. You should make electric cars in India, and also export cars from India, ” he said.
“Whatever support you (Tesla) want, will be provided by our government,” Gadkari added.
Tesla has urged the government to standardise EV pricing and remove the social welfare surcharge placed on them, claiming that it would help the country’s EV ecosystem without jeopardising local interests.
Gadkari stated that he was in discussions with Tesla executives over the company’s desire for tax breaks.
Last month, the Union minister demanded that Tesla begin manufacturing in India before any tax breaks could be considered.
The Indian government imposes a 100% import tariff on vehicles, whereas fully built units (CBUs) are subject to a customs duty ranging from 60% to 100%, depending on engine size and cost, insurance, and freight (CIF) value less or greater than $40,000.
The taxes are intended to safeguard domestic producers, and despite Musk’s open appeal, the government’s stance has remained unaltered thus far.
(With inputs from agencies)
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