India's Commerce and Industry Minister Piyush Goyal emphasized that India will not tailor its policies to accommodate the demands of US electric vehicle maker Tesla, stating that the country's laws and tariff rules will be designed to attract all-electric vehicle manufacturers worldwide.
In an interview with PTI, Goyal stated that the Indian government recognizes the importance of fostering a vibrant electric vehicle (EV) ecosystem to reduce carbon emissions and decrease the country's oil import bill. However, he stressed that policies will be formulated to encourage all EV manufacturers to establish a presence in India, rather than favoring any specific company.
"We are working on several initiatives where we are having inter-ministerial consultations and a dialogue with stakeholders, with potential investors from across the world from Europe, from the United States, from the Far East, from Japan, from Korea," Goyal said.
Tesla had requested an initial tariff concession as a precondition to building a plant in India, seeking to offset customs duties of up to 100 percent for vehicles priced over USD 40,000. Goyal reiterated that the government does not cater to the interests of any individual company and emphasized that decisions will be made in the broader interest of the country.
"We recognize that India must have a vibrant electric mobility ecosystem. We recognize that it has multifarious benefits to grow towards electric mobility," Goyal said, highlighting the environmental and economic advantages of transitioning to electric vehicles.
Goyal underscored the government's commitment to fostering the electric vehicle sector, viewing it as a means to strengthen the country's economy. He emphasized ongoing efforts to engage with stakeholders and potential investors globally to encourage investment in India's EV market.
India has introduced production-linked incentive schemes to attract investment in advanced chemistry cell manufacturing and auto component production. Goyal visited Tesla's manufacturing facility in Fremont, California, last November, with the company sourcing goods worth about USD 1 billion in 2022.
The UK, currently negotiating a free trade agreement with India, is also seeking customs duty concessions on electric vehicle exports under the proposed agreement. India's electric vehicle market is poised for significant growth, with sales expected to reach one crore units annually by 2030, creating millions of direct and indirect jobs.
Tata Motors leads the passenger electric vehicle segment in India, with a portfolio including the Nexon EV range, Tiago EV, and Tigor EV.
Follow us
