- Tuesday, February 25, 2025
By: Shubham Ghosh
INDIA’S road transport and highways minister Nitin Gadkari on Friday (8) said that US electric car-maker Tesla had been asked not to sell its China-manufactured vehicles in India and instead make them in the South Asian country. He also reportedly asked Elon Musk’s firm to export its car made in India. Gadkari’s words came at a time when India and China are in the middle of a series of confrontations at various parts of their long border.
The senior leader said while addressing an event, “I have told Tesla that don’t 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.” Gadkari also said that Tesla has been assured of al necessary support from the Indian government.
Tesla has been seeking a reduction of import duties in India, Musk has said on Twitter that his company’s plans to bring electric vehicles to India were hampered by the country’s high import duties.
“We want to do so, but import duties are the highest in the world by far of any large country!” he said.
The Indian government levies a 100 per cent import duty on cars. Completely built units (CBUs) attract customs duty ranging between 60 to 100 per cent, depending on the engine size and cost, insurance and freight value less or more of $40,000 (£29,382). The government charges the duties to protect the country’s domestic manufacturers and its stance has remained unchanged so far despite Musk’s appeal.
“I’m told import duties are extremely high (up to 100 per cent), even for electric cars. This would make our cars unaffordable,” he tweeted in 2019.
The car-maker also told India’s road ministry that the effective import tariff of 110 per cent on vehicles with customs value of more than $40,000 was “prohibitive” to zero-emission vehicles. Musk had also said that India treated clean-energy vehicles the same way as those run in diesel and petrol and called the stance inconsistent with its climate goals.
Tesla advised the Indian government to standardise tariffs on the electric vehicles and scrap the social welfare surcharge levied on them. According to it, such a move would facilitate India’s electric vehicle ecosystem without hurting the domestic makers.
Gadkari said he was holding talks with Tesla officials over their demand related to tax concessions. In September, he had asked the car-maker to begin manufacturing in India before consideration of any tax concession.
He also said that the Indian government is eyeing for 30 per cent electric vehicle sales penetration for private purchases, about 70 per cent for commercial purchases and 80 per cent for two- and three-wheelers by 2030. He added that there is an urgent need to decarbonise the transport sector.
The Indian minister also said that Tesla cars will be launched in India at a price of around Rs 35 lakh (£34,219).
