Nitin Gadkari extends an invitation to Tesla to produce electric automobiles in India.
Vendors are on hand. We have every type of technology and all the necessary spare parts.
Key Highlights
- Tesla, based in the United States, may build its electric vehicles in India, the business must refrain from importing vehicles from China.
- Elon Musk, Tesla CEO, stated in January that the company was encountering numerous difficulties with the government in launching its products in India.
- However, the government's top priority is safety, and there can be no compromise on human life, Gadkari said.
- The minister of road transport and highways stated that the government wishes to increase the popularity of electric vehicles.
- Ola Electric announced last week that it was recalling 1,441 units of its electric two-wheelers following reports of vehicle catching fire.
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On Tuesday, Union minister Nitin Gadkari laid out the Modi government's position on Tesla's India aspirations. He stated that while Tesla, based in the United States, may build its electric vehicles in India, the business must refrain from importing vehicles from China.
"There is no issue if Elon Musk (Tesla CEO) is willing to produce in India... "Come to India, establish manufacturing operations; India is a sizable market from which they can export," he remarked during an interactive session at the Raisina Dialogue.
Elon Musk, Tesla's creator and CEO, stated in January that the company was encountering numerous difficulties with the government in launching its products in India. He did not, however, comment on the nature of the firm's difficulties.
Tesla had previously requested a reduction in India's import taxes on electric vehicles (EVs).
The road transport and roads minister stated that Musk was invited to come to India and manufacture. However, if he intends to manufacture in China and sell in India, this cannot be a good deal for India, Gadkari stated.
India, he asserts, possesses a complete capability. "Vendors are on hand. We have access to all types of technologies and spare components, "he said, adding that the deal will benefit both India and Tesla.
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Last year, the heavy industries ministry also requested that Tesla begin manufacturing its renowned electric vehicles in India before considering any tax breaks.
At the moment, cars imported as completely built units (CBUs) are subject to a customs charge of 60–100% depending on the engine size and the cost, insurance, and freight (CIF) value of less than or greater than $40,000.
Last year, the US corporation argued in a letter to the road ministry that the effective import tariff of 110 percent on vehicles with a customs value greater than $40,000 is "discriminatory" against zero-emission vehicles.
It had urged the government to reduce the tax on electric vehicles to 40% regardless of their customs value and to eliminate the 10% social welfare levy on electric vehicles.
It asserted that these improvements would accelerate the growth of India's EV ecosystem, and that the business would make major direct investments in sales, service, and charging infrastructure, as well as dramatically expand its global procurement from India.
The company argued that 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 $40,000 (approximately Rs 30.6 lakh) and only 1-2 percent of cars sold in India (EV or ICE) have an ex-factory/customs price greater than $40,000.
Electric Vehicles Under Fire
Gadkari ordered manufacturers of electric two-wheelers to begin recalling all defective vehicles immediately. Additionally, he stated that there is a problem with EV batteries throughout the months of March, April, and May.
Additionally, the Minister of Road Transport and Highways stated that the country's EV business has "only begun" and emphasised that the government does not wish to create impediments. However, the government's top priority is safety, and there can be no compromise on human life, "Gadkari said.
His words take on further relevance in light of multiple incidences involving electric vehicles (EVs) catching fire and killing or injuring people. The minister of road transport and highways stated that the government wishes to increase the popularity of electric vehicles. As far as we are aware, the electric vehicle sector is still in its infancy. We do not wish to create a barrier. However, the government's top concern is safety, and there can be no compromise on human life, "Gadkari declared.
The government initiated an investigation last month after an e-scooter launched by Ola's electric mobility unit caught fire in Pune. According to the road transport ministry, the Centre for Fire, Explosive and Environmental Safety (CFEES) was tasked with investigating the circumstances surrounding the occurrence and recommending corrective steps.
Additionally, the ministry requested that CFEES share the findings, as well as its recommendations for preventing future accidents.
Ola Electric announced last week that it was recalling 1,441 units of its electric two-wheelers following reports of vehicle catching fire. Okinawa Autotech recalled nearly 3,000 vehicles, while PureEV recalled over 2,000 vehicles.