By 2025, India Will be World’s No. 1 Electric Car Manufacturer, Will Export to the World: Gadkari

Whether or not Tesla brings its electric car to India, Union Road Transport Minister Nitin Gadkari believes that Indian carmakers can develop better electric four-wheelers.

His declaration follows Tesla CEO Elon Musk’s statement last month when he posted on Twitter that “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars,” as a response to queries to Tesla’s plans for India.

Tesla requested tax reductions for importing electric cars, but the centre has declined, claiming that rules already enable partially-built vehicles to be imported and assembled locally at a reduced rate.

Vivek Johri, chairman of the Central Board of Indirect Taxes and Customs, said: “We looked at whether the duties need to be rejigged, but some domestic production is happening and some investments have come in with the current tariff structure. So, it is clear that this is not a hindrance.”

Musk’s demands including the reduction in tax that the central government finds unacceptable may be a significant gift to the country as it will give the Indian automotive industry the flexibility it needs to develop vehicles that may take the world by storm.

Indian auto giants are building a new generation of electric vehicles, created for the masses and that could dominate global markets. For example, Tata Motors recently announced the concept car Avinya, Mahindra is going to unveil its born-electric concepts and there are other domestic players too.

However, while addressing the silver jubilee celebration program of the Society of Automotive Engineers India (SAEINDIA) in Pune on June 18, the minister claimed after seeing a vehicle crash test that the government was never in favour of any company making cars in China and selling them in India, which Gadkari had said earlier too.

The minister further stated that Indian automakers are more than capable of producing the world’s best electric vehicles and the country has a plethora of young, skilled designers who are improving their craft.

According to the union minister: “We have all automobile brands here. It doesn’t matter if one or two of them are not here. We told a company that manufacturing in China and selling cars here won’t work. If you want to come here, you manufacture in India.”

A day before, Gadkari said that within a year, all-electric cars in India will be the same price as petrol vehicles.

However, on June 18, the Union minister said that to address many difficulties in the business, from fuel to engineering, the car industry should do need-based research. Additionally, he said that the auto sector in India should pursue research that will benefit the poor and the industry should always have a goal that will assist the country in becoming self-sufficient, with a focus on quality.

Gadkari also believes that before the end of 2025, India’s auto sector will become the “world’s number one manufacturer hub and will be exporting to the entire world”.

Furthermore, the minister stated that the Vehicles Scrappage Policy 2021, which focuses on taking off older vehicles from the road in order to reduce pollution and accidents, will also help the vehicle industry save costs by roughly 30%.

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