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India should not sell China-made electric vehicles, says Modi government

Nitin Gadkari, the Union minister, said on Friday that Tesla had been told not to sell cars made in China in India, but to make them here instead. ‘Tata Motors’ electric automobiles are just as good as Tesla’s electric cars. Musk is encouraging his company to export automobiles made in India’, Gadkari added. ‘We have told Tesla that you should not sell electric cars in India that you have manufactured in China. You should make electric cars in India, and also export them. We will provide whatever assistance you (Tesla) need,’ Gadkari said.

In an effort to help the country’s EV ecosystem without compromising local interests, Tesla has urged the government to standardize EV pricing and eliminate the social welfare surcharge. Tesla executives requested tax breaks from Gadkari, who said he was in discussion with them. The Union minister demanded that Tesla begin manufacturing cars in India before any tax breaks would be considered.

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Indian auto imports are subject to a 100% tariff, whereas fully-built units (CBUs) are subject to a customs duty ranging from 60% to 100%, based on engine size and cost, insurance, and freight (CIF) value less than or equal to $40,000. Musk’s open appeal has had so far not changed the govt’s stance on the tax, which is intended to protect domestic producers.

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