Get Instant Loan up to ₹10 Lakh!
Elon Musk’s Tesla seeks tariff concession to enter Indian market, but Minister says, ’We do not tailor policy for any…’
Piyush Goyal, Commerce Minister stressed on formulating laws and tariffs to attract global EV manufacturers and rejected special treatment to any specific company including, Tesla
Piyush Goyal, Commerce and Industry Minister, said on March 10 that India would not tailor its policies to suit US EV maker Tesla.
In an interview with PTI, Piyush Goyal mentioned that India’s laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the world to set up up shop in India. He further mentioned that India will not tailor policies to suit any one company in the world’s fastest-growing economy.
“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, as reported by the news agency.
Also read: Piyush Goyal to meet Elon Musk amid Tesla’s Indian market entry talks: Sources
Piyush Goyal noted that greater use of battery-run vehicles will reduce carbon emissions, and the government recognises the need for a vibrant EV ecosystem. This ecosystem will also ensure the reduction of extremely high oil import bills and save foreign exchange, reported PTI.
Also read: Countries need to work together for open supply chains: Piyush Goyal
The Commerce Minister claimed that the country is working on several initiatives where the ministry is conducting inter-ministerial (consultations) and a dialogue with the stakeholders, with potential investors from across the world from Europe, the United States, the Far East, Japan, Korea and more.
Also read: Piyush Goyal tears up at Mint Public Policy Summit talking about girl child | Watch
“Government does not tailor policy for any one individual company or its interests,” PTI quoted the Commerce Minister as saying while answering a question about whether the government is considering giving Tesla any concessions for setting up a manufacturing facility in India. If Tesla were to successfully establish a factory in India, it would be its sixth manufacturing plant.
Also read: Bad news for Elon Musk’s Tesla? Indian govt says no plans for providing exemption or subsidy on EV imports
While recognising that India should have a vibrant electric mobility ecosystem to fight against the climate change crisis and improve pollution levels, Piyush Goyal mentioned that electric mobility will add to our economic output. He said multifarious benefits will follow, including saving foreign exchange, reducing trade deficits, and lowering inflation, which will, in turn, help reduce interest rates.
Also read: Elon Musk’s wealth plunges by $40 billion in 2024 as Tesla shares crash 30% YTD on poor sales
The Commerce Minister pointed out that the electric vehicle sector can serve as a powerful medium to make India macro-economically stronger.
Elon Musk’s Tesla wishes to offset 70 per cent customs duty for cars worth less than USD 40,000 and 100 per cent for higher-value cars. Thus, the EV maker has been seeking tariff concessions as a precondition for building a plant in India. Meanwhile, India imposes high tariffs on motor vehicles to boost local production.
(With inputs from PTI)
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsNewsElon Musk’s Tesla seeks tariff concession to enter Indian market, but Minister says, ’We do not tailor policy for any…’
First Published:11 Mar 2024, 10:11 AM IST
- Top Gainers
- Top Losers
- 52 Week High