Tesla Will Get Benefits By Manufacturing EVs In India, Says Nitin Gadkari

Gadkari, who was addressing an event, said days are not very far when the prices of all EVs will be less than the cost of petrol vehicles in the country

Nitin Gadkari earlier had said there will be no problem if Tesla wants to make EVs in India, but the company must not import cars from China. Image: Getty

Source : Getty

New Delhi: Nitin Gadkari, Union road transport and highways minister, on Monday said that if Tesla wants to manufacture its electric vehicles (EVs) in India then the company will get benefits.

“Agar Tesla India me electric car manufacture karega toh unka bhi fayda hoga (If Tesla manufactures its electric vehicles in India then they will also get benefits),” he said.

Gadkari, who was addressing an event, said days are not very far when the prices of all EVs will be less than the cost of petrol vehicles in the country, the PTI reported.

On April 26, Gadkari had said, there will be no problem if Tesla wants to make EVs in India, but the company must not import cars from China.

"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," the minister had said at the Raisina Dialogue.

Last year, the heavy industries ministry had asked the US automaker to first start manufacturing in India before any tax concessions can be considered.

Cars, which are imported as Completely Built Units (CBUs), attract Customs duty ranging from 60-100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above $40,000.

Last year, in a letter to the road ministry, the US company had stated that the effective import tariff of 110 per cent on vehicles with customs value above $40,000 is “prohibitive” to zero-emission vehicles.

The company had also requested the Centre to standardise the tariff on electric cars to 40 per cent, irrespective of the Customs value, and withdraw the social welfare surcharge of 10 per cent on electric cars, saying that these changes would boost the development of the Indian EV ecosystem.

Adding that Tesla will make significant direct investments in sales, service, and charging infrastructure and increase procurement from India for its global operations.