Nitin Gadkari wants Tesla to manufacture cars in India, warns against China-made cars

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

The government may consider cutting import duties as well as providing other benefits to Tesla, but in order to do so, the EV manufacturer would have to invest in establishing a manufacturing site in the country. Currently, India slaps a 100% import tax on imported cars 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 automobiles in India, but the country's import levies on EVs are "by far the highest in the world."

“We want to do so, but import duties are the highest in the world by far of any large country!" he had posted on Twitter.

The EV firm had petitioned the government to reduce the import tariff on EVs from 100% to 40%. Tesla also intends to establish a manufacturing facility in Karnataka if it achieves success with imported vehicles. Gadkari stated that whatever assistance Tesla requires to build its electric vehicles in India, "the government will supply."

Tesla has a good opportunity to build up a production facility in India, according to the minister, because the country is bullish on e-vehicles. Currently, the premium car market in India accounts for approximately 7% of the total car market. Without a reduction in import duties, Tesla will remain premium but not ultra-premium in the Indian market. Gadkari further stated that with the utilisation of alternative fuels and technology, the Indian automobile business may become the world's leading one. He stated that it was his ambition to make India's automobile sector the world's leader in the segment.

“I am confident that we are going to be the number one in the world by using alternative fuel and technology within five years," the minister said.

On the issue of air pollution, Gadkari said, “The most important problem which our country is facing is the problem related to pollution and the economy. And by using petrol and diesel we are going to generate air pollution in the country."