Don’t sell made in China cars in India: Gadkari tells Elon Musk’s Tesla

Tesla is urging the Indian government to reduce the import taxes on electric vehicles.

New Delhi: Union Transport Minister Nitin Gadkari, on Friday (October 8), said that he has asked Tesla not to sell its China-made electric cars in India and that the company should manufacture electric four-wheelers in India and export it to the world. 

Speaking at a media event, Gadkari also said that he has asked Tesla many times to manufacture its electric cars in India. He added that Tesla has been assured of all the support from the government’s side as well. 

Tesla has recently asked the Central government to lower the import taxes on electric vehicles in India. Currently, the import duties on electric cars are in the same category as fuel-based four-wheelers. 

"I have told Tesla not to sell electric cars in India which your company has manufactured in China. You should manufacture electric cars in India, and also export cars from India," he said. 

"Whatever support you (Tesla) want, will be provided by our government," Gadkari added. 

Reports have previously suggested that the Indian government is not in the mood to lower the import duties on electric vehicles. However, several other global brands have now joined Tesla for asking the Indian government to lower the import duties. 

Currently, cars imported in India as completely built units (CBUs) attract customs duty ranging from 60-100 per cent. The tax depends on engine size and cost, insurance and freight (CIF) value of cars. Also Read: ZEEL gets time till October 22 to respond to Invesco’s plea

In a letter to the road ministry, Tesla had said that the effective import tariff of 110 per cent on vehicles with customs value above USD 40,000 is "prohibitive" to zero-emission vehicles. Also Read: Motorola Moto E40 with 90Hz LCD, 48MP main camera launched