With Elon Musk’s Tesla launching in India soon, the Union Minister for Roads and Highways, Nitin Gadkari on Friday said that he had invited the company to manufacture electric cars in India. He said that the government will extend all the support required for the manufacturing facility.
Gadkari Invites Tesla To Set Up Manufacturing Unit In India
Gadkari spoke at the India Today Conclave 2021. He said that he has asked Tesla that they shouldn’t sell electric cars manufactured in China, in India. They should manufacture electric cars in India and export cars from here itself.
He said that government may consider importing duty along with offering other kinds of support schemes to Tesla. However, for that, the EV major would have to invest in setting up a manufacturing facility in India. He added that the government will provide all the support that the Tesla needs to manufacture its electric cars in India.
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The minster also recently said that Tesla has a golden opportunity to set up its manufacturing facility in India. Currently, the premium car market is about 7 percent of the total car market in India. Without relaxation on the import duties, Tesla will remain premium for the Indian market but not the ultra-premium.
Gadkari said that it was his dream to make the Indian automobile sector the leader of the segment in the world. He said that the he is confident that India will be a number one country in the world by using alternative and technology within the next five years.
Currently, India levies a 100 percent tax on the imported cars which costs more than $40,000 (Rs 30 lakh). It is inclusive of the insurance and shipping expenses. Cars that cost less than $40,000 are subject to 60 percent import tax.
Musk Tweeted About Highest Import Duties In India
Earlier this year, Musk said that he wants to launch cars in India but the import duties in India for the EVs are “highest in the world by far”. Following this, Tesla urged the government to lower the import tax on the EVs to 40 percent from 100 percent.
Meanwhile, the company has also plans to manufacture the unit in Karnataka once they achieve success with importing cars.
