The Modi government has asked Tesla CEO Elon Musk not to sell made in China automobiles in India.
Friday, October 8, 2021 | Chimniii Desk
Highlights
- Nitin Gadkari, the Union minister, said on Friday that he had requested Tesla, located in the United States, numerous times to produce its renowned electric vehicles in India, while promising the firm of the government's full support.
- "I have advised Tesla not to sell electric vehicles produced in China in India.
- Tesla has requested that India reduce import taxes on electric cars (EVs)."Whatever assistance you (Tesla) require, our government will offer," Gadkari continued.
- The minister of road transport and roads stated that he is continuing in contact with Tesla authorities over the company's request for tax breaks.
- The heavy industries ministry also requested last month that Tesla begin producing its famous electric vehicles in India before considering any tax breaks.
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Nitin Gadkari, the Union minister, said on Friday that he had requested Tesla, located in the United States, numerous times to produce its renowned electric vehicles in India, while promising the firm of the government's full support.
Addressing the 'India Today Conclave 2021,' Gadkari said that Tata Motors' electric automobiles are just as excellent as Tesla's.
"I have advised Tesla not to sell electric vehicles produced in China in India. You should build electric vehicles in India and export them as well "'He stated.
Tesla has requested that India reduce import taxes on electric cars (EVs).
"Whatever assistance you (Tesla) require, our government will offer," Gadkari continued.
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The minister of road transport and roads stated that he is continuing in contact with Tesla authorities over the company's request for tax breaks.
The heavy industries ministry also requested last month that Tesla begin producing its famous electric vehicles in India before considering any tax breaks.
Currently, automobiles imported as fully built units (CBUs) are subject to a customs charge of 60–100%, depending on the engine size and cost, insurance, and freight (CIF) value of less than or greater than USD 40,000.
The US business said in a letter to the road ministry that the effective import duty of 110 percent on cars with a customs value greater than USD 40,000 is "discriminatory" against zero-emission vehicles.
It has urged the government to reduce the tariff on electric vehicles to 40% regardless of their customs value and to eliminate the 10% social welfare levy on electric vehicles. According to the firm, these improvements will accelerate the growth of India's EV ecosystem, and it will make large direct investments in sales, service, and charging infrastructure, as well as considerably increase sourcing from India for its worldwide operations.
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According to the company, these proposals would have no adverse effect on the Indian automotive market because no Indian OEM currently produces a car (EV or ICE) with an ex-factory price greater than USD 40,000 and only 1-2 percent of cars sold in India (EV or ICE) have an ex-factory/customs value greater than USD 40,000.
Gadkari recently stated that Tesla has a good chance to establish a manufacturing facility in India, given the country's emphasis on electric vehicles.
Tesla already sources a variety of automotive components from Indian automakers, and establishing a facility here would be economically viable, he has stated.
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