Nitin Gadkari urges Elon Musk to to make electric cars in India; assures government's support

By Team Newsable | First Published Oct 10, 2021, 3:42 PM IST

Gadkari claimed that "the government will give" any help Tesla needed to manufacture its electric automobiles in India.

Nitin Gadkari, Union Minister for Roads and Highways, has invited Elon Musk's Tesla to come and manufacture electric cars in the nation. The government will provide all necessary support for the production site. Gadkari stated at the 'India Today Conclave 2021': "I have warned Tesla that we would not sell electric cars made in China in India. You should produce electric vehicles in our country and export them from India."

The government may consider decreasing import duties as well as providing other benefits to Tesla. Still, in order to do so, the EV manufacturer would have to invest in establishing a manufacturing plant in the nation. Currently, India charges a 100% import tax on imported automobiles costing more than $40,000 (Rs 30 lakh) inclusive of insurance and shipping costs, while cars costing less than $40,000 are subject to a 60% import tax. Musk previously stated his desire to launch vehicles in India, but the country's import taxes on EVs are "by far the highest in the world."

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"We want to, but our import duties are by far the highest in the world for any big country!" the minister had tweeted about it. The EV firm had requested the government to reduce the import tariff on EVs from 100% to 40%. If it is successful with imported automobiles, Tesla plans to open a manufacturing factory in Karnataka. Gadkari claimed that "the government will give" any help Tesla needed to manufacture its electric automobiles in India.

According to the minister, Tesla has a wonderful opportunity to build up a production facility in India because the country is bullish on e-vehicles. Currently, the premium automobile market in India accounts for around 7% of the entire car market. Tesla will stay premium but not ultra-premium in the Indian market until import duties are reduced. Gadkari further stated that with the utilisation of alternative fuels and technology, the Indian car business might become the world's leading one. He noted that it was his ambition to make India's car sector the world's leader in the area.

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"I am certain that we will be number one in the world in five years by employing alternative fuel and technology," added the minister. Gadkari stated of air pollution, "The most significant challenge that our country is facing is the problem of pollution and the economy." And by consuming gasoline and diesel, we will contribute to air pollution throughout the country."

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