With Tesla reported lobbying for drastic reduction in import duties on electric vehicles (EVS) in India and Hyundai support Tesla for the same tax relief, the founder of Ola Bhavish Aggarwal hit again by saying that he “strongly disagrees” with thinking that reduces tax, and Import duties will help increase demand for EV in India and also generate revenue for the government.
“Let’s believe in our ability to build originally and also attract the global OEM to be built in India, not just imports.
We will not be the first country to do it,” Tweeted Aggarwal.
Very disagree with both.
Let’s believe in our ability to build originally and also attract Global OEM …
https://t.co/Vhe9NZN5E8- Bhavish Agggarwal (@Bhash) 1627376395000TESLA trying to start selling its cars in India from this year.
According to the report by Reuters, Tesla in a letter to Ministries and Niti Aayog said that cutting government tax on imports of electric cars which was fully assembled to 40% would be more appropriate.
“The argument is that on 40% import duty, electric cars can be more affordable but the threshold is still high enough to force the company to produce locally if the request takes,” said the report.
Minister of Road Transportation & Jalan Raya Nitin Gadkari was said to have expressed interest in offering tax incentives if Tesla decided to make a car in India.
The market for high-end EVs is primarily due to higher ownership costs in India and car charging facilities that can be ignored throughout the country.
“Only 5,000 of the 2.4 million cars sold in India last year are electricity and most are priced under $ 28,000,” the report added.
Ola entered the electric vehicle space in India with its Ola electric scooter which was claimed to be the two-wheeled EV ranged in the highest in India with a range of 150 km and a top speed of 100 km.
The company claims that Electric Ola’s scooter has got 1 lakh ordering.
Transportation Minister Nitin Gadkari told Reuters in March that India would be willing to offer incentives to ensure the production costs of Tesla in this country are less than it in China, but only if producing locally.