No Problem In Tesla Producing EVs In India: Nitin Gadkari

| Updated: 26 April, 2022 7:08 pm IST
Union Road Transport and Highways Minister Nitin Gadkari.


NEW DELHI: Minister for Road Transport and Highways Nitin Gadkari said that the country has no problem if Tesla is ready to manufacture its electric vehicles in India but, he added, that Elon Musk’s company must not import cars from China.

During an interactive session at India’s geo-economic conclave, Raisina Dialogue, in its national capital, Gadkari further said India is a large market and there is a huge potential for all electric vehicles.

“If Elon Musk (Tesla CEO) is 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. “But if he wants to manufacture in China and sell in India, then it cannot be a good proposition for India,” Gadkari said.

“The vendors are available. We have all types of technology, we have all the spare parts,” he said, adding that it will be a win-win situation for both India and Tesla.

Last year, in a letter to the road ministry, the US firm stated that the effective import tariff of 110 per cent on vehicles with customs value above USD 40,000 is “prohibitive” to zero-emission vehicles.

It had requested the government to standardise 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.

The heavy industries ministry had 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 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000.

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