Tuesday, October 19, 2021

Don’t sell ‘Made-in-China’ cars in India, do production here: Gadkari’s advice to Tesla

Union Minister for Road Transport and Highways Nitin Gadkari said that he has advised Tesla several times to do local production for the Indian market. He told that Tesla will get full support of the central government for this. If Gadkari is to be believed, he has made it clear to the American Electric Vehicle Manufacturer (Tesla) that his vehicles made in China will not be sold in India.

Speaking at the Indian Today Conclave 2021, Gadkari clarified the intention of the Indian government to push for local production of electric vehicles. Gadkari said Tesla should consider this option. Gadkari said, “I have told Tesla not to sell electric cars made in China by the company in India. You should manufacture electric cars in India, and also export cars from India. Whatever support you (Tesla) want, our government will give.”

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Now there is heavy import duty
At present, India levies 100% tax on imported vehicles costing more than $40,000 (Rs 30 lakh), which includes insurance and shipping charges. At the same time, 60 percent import tax is levied on cars priced below $ 40,000 (Rs 30 lakh). Tesla CEO Elon Musk recently said that he wants to launch the car in India, but India’s import duty on EVs is the “highest ever in the world”.

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Tesla had urged the Indian government to reduce the import duty on EVs from 100 per cent to 40 per cent. The company also plans to start its manufacturing unit in Karnataka. Tesla set up its plant outside the US for the first time in 2019, which is located in Shanghai. The plant has become a major center for the production of Tesla Model 3 and Model Y vehicles. From here it is supplied not only to the local Chinese market but also to many European countries.

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