New Delhi : The Modi government at the Center is planning to bring a new and comprehensive electric vehicle policy to attract more foreign electric vehicle manufacturers in India. Union Commerce Minister Piyush Goyal said the government is looking forward to more investment from electric vehicle manufacturers across the world to boost local manufacturing as well as boost India’s electric vehicle industry. His comments come at a time when the world’s largest electric car maker is planning to enter India with proposals to invest in Tesla and its components as well as a new plant.
Tesla is trying to capture the big market of India
In an attempt to capture the large market of India, Tesla is emphasizing on the new car, which will be the cheapest of the EV manufacturers. Its price is expected to be less than Tesla’s current entry-level model Model 3 by about $ 24,000 (about Rs 20 lakh). It will be made in India for the Indian market and export. Recently, Tesla’s high level team came to India to discuss its investment plan with Indian government officials. After this, Tesla CEO Elon Musk met Prime Minister Narendra Modi during his US tour. He had also expressed interest in investing in India including a new plant.
Government may reduce import duty on foreign electric cars
According to a report by news agency Reuters, the Modi government is considering reducing the import duty on foreign electric cars if American electric vehicle manufacturers commit to investing in India. This may be part of the Centre’s upcoming EV policy. Union Minister Piyush Goyal said that the new policy will be prepared after discussion with all the stakeholders. He said that we will come up with a policy. As soon as we get mass production, we will start enjoying the fruits of economies of scale of new technologies.
A year ago Tesla had refused to come to India
Tesla’s interest in India comes almost a year after its CEO practically canceled the plans due to the Centre’s stance of not reducing import duties unless the EV maker committed to investment or local production. yes. The rapid turnaround is extremely important for India’s car market, as Tesla had several times urged the central government to consider reducing taxes. Tesla’s entry into India could open doors for other global EV manufacturers to plan investments here.
Tesla has its eyes set on India for a long time
Let us tell you that Tesla, the American electric vehicle manufacturer of billionaire industrialist Elon Musk, wants to expand its business in India on the lines of electronic goods and mobile manufacturer Apple. According to a media report, Tesla is exploring the possibility of setting up a manufacturing plant and starting its business in India to manufacture electric cars and its batteries.
Tesla will expand business in India on the lines of Apple
According to a media report, the American electric car maker has been asked by the Indian government to emulate tech giant Apple by finding local firms to partner with any Chinese suppliers involved. The biggest thing is that Tesla’s Chief Executive Officer (CEO) Elon Musk wants to expand the company’s foreign business outside China and his eyes have been fixed on India’s consumer market for a long time.
Tesla’s business depends on Chinese vendors
Let us tell you that Tesla’s entire business depends on Chinese sellers and suppliers. During a meeting with government officials in New Delhi during the month of August, Tesla representatives informed the Indian government that it would like some vendors from China to set up a base locally to boost its supply chain. In response, government officials told Tesla that Chinese companies came under intense scrutiny following the border dispute between the two countries in 2020, due to which it may be difficult for wholly owned Chinese companies to get approval in India.