Union Minister of State for Power Krishan Pal Gurjar and Cofounder & CEO of Tesla Elon Musk
TheNFAPost Podcast

New Delhi, NFAPost: Union Minister of State for Power Krishan Pal Gurjar stated India’s stand of not giving any import duty concession to electric vehicles as global giants like Tesla is looking at tax benefits to set up manufacturing unit in the country.

Speaking at parliament on Monday, Krishan Pal said no such proposal is under consideration in the Ministry of Heavy Industries.

He was referring to the ministry in charge of making policies for the auto industry. He added that the government is however taking steps to promote the use of electric cars by lowering domestic taxes and adding charging stations.

The statement directs to the government’s policy to boost local manufacturing and build an ecosystem for electric vehicles in the country.

Elon Musk owned Tesla is urging India to allow it to import cars more cheaply before it commits to setting up a factory in the country. Tesla last month wrote to the transport and industry ministries requesting them to cut import duty on electric cars to 40% from the current range of 60%-100%.

The electric automaker wants to propel its India journey by first beginning sales with imported vehicles. It has already set up an office in Bengaluru to lead its India entry.

It is a reality that poor charging infrastructure and expensive costs have put spoke into India’s game plan for large-scale adoption of electric vehicles. Also, it is a moot question for the government to follow US and China model of massive subsidies for EV adoption.

According to Arvian Research, it is a fact that only 5% of cars sold in India are priced above Rs 15 lakh. “We have to consider the fact that the per capita income in India is only $2,000. This is only 5% of that in Europe and Japan. So purchasing expensive electric cars beyond the reach of most consumers,” states Arvian Research.

India is facing herculean task to address issues like global warming that it should be kept below dangerous levels. To achieve net-zero emissions, automotive companies should work on hybrid models, improve technology for cars running on compressed natural gas and look into biofuels along with massive adoption of the electric vehicles.

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