Indian govt says no to EV imports from China, asks Tesla to make cars in India

Union Road Transport and Highways Minister Nitin Gadkari on Tuesday asked Tesla to set up a shop in India in a bid to sell its electric vehicles in the country. The minister also asked the company not to export cars from China to India.

“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,” Gadkari said during an interactive session at the Raisina Dialogue, as reported by PTI.

“But if he wants to manufacture in China and sell in India, then it cannot be a good proposition for India,” Gadkari added.
Furthermore, Gadkari stressed on the fact that India was a large market and there is a huge potential for electric vehicles in the country.

Tesla in a stalemate

Tesla has been in a stalemate in India for quite some time now. The US-based electric vehicle maker has been trying hard to import and sell its EVs in India. However, the existing taxes have prohibited the company from doing so. Tesla’s executives have also lobbied in New Delhi to cut taxes for almost a year, which the company’s Elon Musk says are among the highest in the world. However, the Indian government hasn’t been convinced as the company has failed to share a detailed plan of investing in the country, something that is in line with Prime Minister Narendra Modi’s ‘Make in India’ vision.

With neither side willing to change, the discussions have reached a weird stalemate.

As of now, India levies an import tax of 100 percent on electric vehicles which have a ‘landing cost’ (car’s price and shipping charges) of $40,000 (Rs 30.6 lakhs) or more. Tesla says that this tax would make India its most expensive market, which in turn would make the car out of reach for most Indian consumers. And so, the company has asked the Indian government to grant it tax concessions so that it can start selling cars in India. The company has requested the government to standardise the tax on all EVs to 40 percent and withdraw the social welfare surcharge of 10 percent. However, the government has so far refused to grant any concessions to the company.

Faqs

Models Ex- Showroom Price [Delhi]
—————- ————————–
Renault Zoe Rs.8 lakh
Mahindra eKUV100 Rs.8.25 lakh
Tata Tiago EV Rs.6 lakh
ORA iQ Rs.20 lakh

On January 18, the government of the southern state of Tamil Nadu — home to Chennai, which is called the “Detroit of India” for its auto manufacturing prowess — took out a front-page ad in The Economic Times declaring that the state was the country’s preeminent “EV capital” and boasting $2.5 billion in investment 28-Mar-2022

– Volvo XC40 Recharge.
– Tata Altroz EV.
– Tata Tiago EV.
– Hyundai Kona Facelift.
– Mahindra KUV 100 electric.

“Tesla isn’t in India yet due to “Challenges with the government”, he posted. Tesla has registered its office in Bengaluru as Tesla India Motors and Energy Private Limited and named three directors. The firm is registered with an authorised capital of Rs 15 lakh and paid-up capital of Rs 1 lakh.12-Feb-2022

Tata Tigor EV (left) and Nexon EV (right) are the two leading electric cars in the Indian market currently. Tata Tigor EV (left) and Nexon EV (right) are the two leading electric cars in the Indian market currently. Tata Motors continues to dominate the electric vehicle segment in India.11-Mar-2022

Conclusion

The Union Road Transport and Highways Minister Nitin Gadkari wants Tesla to set up a shop in India so that it can sell its electric vehicles. Nitin Gadkari also asked Tesla not to export cars from China to India.