Gadkari assures support to Tesla but wants US co to produce in India and export

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Union minister Nitin Gadkari has assured support from the government to Tesla, but has asked the US-based company to manufacture its iconic electric vehicles in India and export the same. Speaking at a media event in New Delhi on Friday, he added that the company should not sell electric cars in India, which are manufactured in China. The minister further said that electric cars manufactured by Tata Motors are not bad as compared to those of Tesla.

Tesla has demanded reduction in import duties on electric vehicles (EVs) in India. The road transport and highways minister said that he is still in dialogue with Tesla officials regarding the company’s demand related to tax concessions.

The road transport and highways minister said that he is still in discussions with Tesla officials regarding the company’s demand related to tax concessions. The US-based company has demanded a reduction in import duties on electric vehicles.

Tesla wants tariffs to be standardized

In September, the heavy industries ministry had also asked Tesla to start manufacturing its iconic electric vehicles in India, before considering any tax concessions.

Presently, cars imported as Completely Built Units (CBUs) attracts customs duty ranging between 60 to 100%, depending on engine size, Cost, Insurance and Frieght (CIF) value less or above $40,000.

Also, the US firm stated in a letter to the road ministry that the effective import tariff of 110% on vehicles with customs value above $40,000 is prohibitive to zero-emission vehicles.

Adding to that, it has requested the government to standardise the tariffs to 40% on electric cars, irrespective of the customs value and withdraw the social welfare surcharge of 10% on electric cars.

Speed limit on expressways

Gadkari also said that he is in favour of increasing the maximum speed limit on expressways to 140 km per hour, and added that a Bill will soon be introduced in Parliament to revise the speed limits for vehicles for different categories of roads.

The road transport and highways minister added that there is a mentality regarding speed that if the speed of the car increases then there will be an accident.

“My personal view is that the speed limit for vehicles on expressways should be increased to 140 km per hour,” he said.