New Delhi. Union Road and Highways Minister Nitin Gadkari said on Friday at the India Today Conclave 2021 that he has asked Tesla Company to manufacture electric cars in India itself, he said that for this, the Government of India for necessary cooperation such as manufacturing facilities etc. ready to cooperate fully. He further said that “I have told Tesla that you do not sell electric cars manufactured in China in India, you should make cars with us and export them to the local market as well as to foreign countries”.
Government is ready to give concession, but will have to do this work
Along with concessions to Tesla, the central government can also consider the request of Tesla to work on the import fee, but for this the company will have to set up a manufacturing facility in the country. Currently, in India, imported cars costing more than Rs 30 lakh are taxed at almost 100% including insurance and shipping cost, while cars costing less than Rs. 60 per cent are taxed.
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Elon Musk had requested for reduction in import duty
Tesla company chief Elon Musk had requested the company to reduce the import tax on electric vehicles from 100 percent to 40 percent, recently Elon Musk tweeted that “he wants to launch EV in India, but India has the highest import duty in the world. Tesla has requested the central government to reduce the import tax on EVs from 100 percent to 40 percent.
Apart from this, the company also plans to setup its manufacturing unit in Karnataka.
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India’s auto market can be number one in the world
Gadkari further said that Tesla has the best chance of setting up a manufacturing facility as the demand for EVs is high in the country. Apart from this, he said that with the use of alternative fuel and technology, the Indian automobile sector can be number one in the world. He said that “It is their ambitious plan to make the Indian automobile sector the leader of this segment in the world, and I am confident that within five years we will be the number one in the world by using non-conventional fuels and technology”.
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