India not to tailor policy for Tesla but for all EV companies: Minister
The government is formulating a policy for attracting global electric vehicle manufacturers to invest in India, according to Union Commerce Minister Piyush Goyal.
India will not tailor its policies to suit US EV maker Tesla and its laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the world to set up a base in the world's fastest-growing economy, Commerce and Industry Minister Piyush Goyal said.
Tesla has been seeking an initial tariff concession that would allow it to offset 70% customs duty for cars priced less than $40,000, and 100% for cars of higher value.
In an interview with PTI, Goyal said the government recognises the need for a vibrant EV ecosystem as greater use of battery-run vehicles will cut carbon emissions as well as the staggering oil import bill.
But for this, it will not tailor policies that suit any one company and would rather frame ones that will encourage all-electric vehicle manufacturers from across the world to set up shop in India, he said.
"We are working on several initiatives where we are having inter-ministerial (consultations) and a dialogue with the stakeholders, with potential investors from across the world from Europe, from the United States, from the Far East, from Japan, from Korea," he said.
Tesla made the concession demand a precondition to build a plant in India. High tariffs on motor vehicles, meant to boost local production, have been a lingering issue for foreign carmakers too.
"Government does not tailor policy for any one individual company or its interests. Everybody is free to make their demands. But that does not mean that the government will necessarily take a decision (based on) what you demand," he said.
Goyal was replying to a question about whether the government is looking at giving any concessions to Tesla for setting up a manufacturing facility in India.
The Indian factory, as and when it happens, would be Tesla's sixth vehicle plant.
At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60% to 100%, depending on engine size and cost, insurance and freight (CIF) value less or above $40,000.
The world's largest electric car producer Tesla Inc's chief Elon Musk met Prime Minister Narendra Modi in June last year in New York. Musk, after meeting the Prime Minister, said he plans to visit India in 2024.
"We recognise that India must have a vibrant electric mobility ecosystem. We recognise that it has multifarious benefits to grow towards electric mobility. Not only will it help us in our fight against climate change, it will also improve the environment and lower pollution levels, particularly in cities, which largely suffer because of the ICE (internal combustion engine) or the petrol-diesel fumes that are thrown out," Goyal said.
Edited by Affirunisa Kankudti