Elon musk is welcomed, Tesla will get benefits if EVs are Make-in-India.
If USA- Based Ev car makers Telsa starts manufacturing their Electric vehicles in India then company is going to get benefits, says Union road transport and highways minister Nitin Gadkari. As Nitin Gadkari said days back very soon the price of All-electric vehicle will come less than compared to petrol vehicle in our country.
On April 26, Nitin Gadkari has said if Tesla is ready to manufacture their EV’s from India there is no issues but only condition is Tesla should not import cars from china.
Last year, the heavy industries ministry had also asked Tesla 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 percent, depending on engine size and Cost, Insurance, and Freight (CIF) value less or above USD 40,000.
Last year, in a letter to the road ministry, the US firm stated that the effective import tariff of 110 percent on vehicles with customs value above USD 40,000 is “prohibitive” to zero-emission vehicles.
It had requested the government to standardize the tariff on electric cars to 40 percent, irrespective of the customs value, and withdraw the social welfare surcharge of 10 percent 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 original equipment manufacturer currently produces a car (EV or Internal Combustion Engine) with an ex-factory price above USD 40,000 (around Rs 30.6 lakh), and only 1-2 percent of cars sold in India (EV or ICE) have ex-factory/customs value above USD 40,000.