Nitin Gadkari said once Tesla is ready to make its electric cars in India there is no ‘problem’ but it should not import Chinese cars.
Nitin Gadkari’s Statement on Electric Vehicles:
New Delhi: Nitin Gadkari, on Tuesday, said that when Tesla in the US is ready to make its own electric vehicles (EVs) in India, “there is no problem” but the company should not import cars into China.
In a discussion forum on Raisina Dialogue, Mr. Gadkari also said that India is a huge market and there is a great potential for all-electric vehicles.
“There would be no difficulty once Elon Musk (Tesla CEO) is ready to produce in India… Come to India and begin production; India is a large market to whom they may sell,” he said.
Gadkari’s Request on Production of Electric vehicles to Mr.Musk
The Minister of Roads and Highways said his request to Mr. Musk to come and produce in India.
“But if he wants to make it to China and sell it to India, that would not be a good proposal for India,” Mr. Gadkari said.
Last year, the Department of Heavy Industry also asked Tesla to start producing its own famous electric cars in India before any tax deals were considered.
Currently, imported vehicles as fully built units (CBUs) attract property taxes ranging from 60-100 percent, depending on engine size and cost, insurance and equipment (CIF) costing less than or more than $ 40,000.
Last year, in a letter to the minister of traffic, the U.S. company stated that the 110 percent applicable import duty on vehicles valued at more than $ 40,000 “prohibits” cars from issuing them at all.
He called on the government to reduce the tariff on electric vehicles by 40 percent without regard to property value, and waive the 10 percent social fine on electric vehicles.
It stated that these changes would enhance the development of the Indian EV ecosystem and the company would make significant investments directly in sales, service, and charging infrastructure; and significantly increased the import of goods from India to operate worldwide.
The company has indicated that these proposals will not have a negative impact on the Indian automotive market as no Indian OEM currently manufactures a car (EV or ICE) with a pre-factory price of over $ 40,000 (approximately R30.6 lakh) and is 1- Only 2 cents for vehicles sold in India (EV or ICE) has a pre-industrial/cultural value of more than $ 40,000.
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