Electric vehicles are rapidly gaining attention in India, and talking about Electric vehicles how can we not talk about Tesla? Recently, Elon Musk’s tweets on the Indian government’s take on import duties and EVs had caught everyone’s attention. A senior official from the government has responded to Tesla’s requests on lowering import duties, but if Tesla agrees to join the ‘Make in India’ campaign.
Nitin Gadkari’s Invitation for Tesla
Nitin Gadkari, Union Minister for Road Transport and Highways had invited Tesla to set up a base in India. Nitin Gadkari had advised Tesla to start manufacturing in the country as soon as possible since Indian products would soon catch up to the standards of Tesla and can benefit in their growth.
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Gadkari Mentions the Perks Which Tesla Can Avail in India
Nitin Gadkari also mentioned that Tesla could manufacture elsewhere and market its products here; however, the brand will receive complete support from the government if they set up a factory in the country.
He also mentioned the offerings from state governments; Gujarat was the latest to offer free-of-cost 1000 hectares of land in Mundra near the Kutch coast.
Elon’s Concern for Tesla in India
Elon Musk, CEO, Tesla Inc., had shown concerns regarding high import duties in the country. He had mentioned that import taxes in India are considerably higher than any other large country in the world.
He had mentioned that since the brand is already sourcing multiple components from Indian manufacturers, parts availability will not be an issue.
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Hyundai’s Support for Tesla
Addressing Elon’s Concern Seon Seob Kim, Managing Director, Hyundai Motor India replied and supported Tesla and the EV industry.
He said in a statement that-
“We have heard that Tesla is seeking some duty cuts on imports of CBUs. So, that would be very helpful for the OEMs to reach some economy of scale in this very price competitive segment. It will take OEMs to localize EVs by 100%. We are developing Made in India affordable mass-market EV but at the same time if the government allows some reduction in the duty on imported CBUs that would be very helpful for all of us to create some mass-market demand and reach some scale”.
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Lowering Import Duties: Beneficial or Not
SS Kim said that lowering import duties on electric vehicles would be beneficial for OEMs. Lower import duties will allow them to improve EV volumes and market penetration till the time OEMs are ready with 100% localized EVs for the country.
SS Kim’s statement also lights up on the fact that with localised battery components and other necessary infrastructure, EVs would become considerably affordable, as compared to the current state of electric vehicles, especially four-wheelers in the country.
Ola CEO Bhavish’s Opinion on the Situation
Apart from all of this, Bhavish Aggarwal, CEO, Ola Cabs, had opposed the on-going requests of lowering import duties. He tweeted that, “Strongly disagree with both. Let’s have confidence in our ability to build indigenously and also attract global OEMs to build in India, not just import. We won’t be the first country to do so!”.
Check the tweet here
Strongly disagree with both. Let’s have confidence in our ability to build indigenously and also attract global OEMs to build in India, not just import. We won’t be the first country to do so! https://t.co/n6k7ShYeJX
— Bhavish Aggarwal (@bhash) July 27, 2021
