Home / Articles / Union Minister Nitin Gadkari promises benefits to Tesla if it opens factory in India

Union Minister Nitin Gadkari promises benefits to Tesla if it opens factory in India

Elon Musk is of the opinion that the Indian govt should provide tax benefits for its EVs. Tesla initially plans to import EVs as Completely Build Units Union Minister Nitin Gadkari has reiterated the government’s willingness to invite Tesla to manufacture cars in India. On Monday, the minister of road transport and highways said that if Tesla decides to make cars in India, it will also

  • Posted on 02nd May, 2022 14:50 PM
  • 1231 Views
Union Minister Nitin Gadkari promises benefits to Tesla if it opens factory in India Image

Union Minister Nitin Gadkari has reiterated the government’s willingness to invite Tesla to manufacture cars in India. On Monday, the minister of road transport and highways said that if Tesla decides to make cars in India, it will also get benefits. Also Read - Donald Trump finally posts on new platform Truth Social

The Union Minister also provided assurance, during an event,  that the prices of electric vehicles will soon go below the price of ICE-powered petrol vehicles. The minister has clearly stated, on numerous occasions, that India can be the manufacturing hub for Tesla. On the other hand, it is clear that India won’t be interested in providing tax reliefs for cars that are imported. Also Read - After Twitter buyout, Elon Musk wants to make money out of tweets

The long-standing stalemate between the Indian govt and the EV maker has been going on since 2020. The company was expected to launch its first EV in India that year. Musk did not mince words while criticizing the Indian govt for not doing enough to expedite the EV revolution. Also Read - From Coca Cola to Trumpet, here’s what Elon Musk tweeted about in past week

Musk is of the opinion that the Indian govt should provide tax benefits for its EVs. The American company initially plans to import Tesla cars as Completely Build Units (CBUs) and sell them in India. To this, the Indian govt has categorically stated that it is not interested in cars that are made in China and are sold in India.

On one hand the Indian govt is not ready to give up its stance in the entire matter and on the other, Tesla doesn’t want to sell its cars at almost double the price in India due to the high custom taxes. Elon Musk has claimed that India has one of the highest import duty taxes among large nations.

While cars priced under $40,000 attract a customs duty of around 60 percent. Any vehicle that is valued above this threshold will have to pay more than double in custom duties. This price will have to be passed on to the buyer. Most luxury car brands pay these taxes to sell their car in India.

Indian states have also openly welcomed Tesla to set up a manufacturing facility. States including Telangana, West Bengal, Maharashtra, Punjab, Karnataka and Tamil Nadu have tweeted inviting Elon Musk’s Tesla to India.

If Tesla decides to setup an assembly line in India, the company will be stand to benefit from the central government’s FAME II policy and even from various state-level policies.

With Inputs from PTI

Union Minister Nitin Gadkari promises benefits to Tesla if it opens factory in India View Story

Latest 20 Post