The Indian government is planning to introduce a policy to attract global electric vehicle (EV) manufacturers, according to Commerce Minister Piyush Goyal. When asked by CNBC-TV18 if the government is considering reducing import duties on completely built units of certain electric cars, Goyal stated, “We should strive to attract electric vehicle companies, but this government has a track record of treating everyone equally without showing preferences.”

Goyal added, "After consulting with the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association of India (ACMA), we will develop a comprehensive policy that will benefit everyone.”

Tesla, a US-based EV manufacturer, has been in regular discussions with the Indian government and is considering setting up manufacturing in India. However, Tesla is seeking duty concessions from 100 percent to less than 20 percent to facilitate imports until they can start manufacturing. There are also indications that Tesla is considering introducing an electric car priced under Rs 20 lakh for wider adoption in the Indian market.

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Elon Musk, CEO of Tesla, recently met with PM Modi in the United States and confirmed that Tesla is definitely considering India as a market. However, the company has not yet announced any roadmap for India.

Tesla, which sourced components worth $1 billion in the last financial year, is on track to source components worth up to $1.9 billion in the current financial year. In relation to this and the possibility of a cut in import duties on completely built-up electric cars, Goyal stated that they are a listening government and whatever they do will be for everyone.

The European Union recently announced the Carbon Border Adjustment Mechanism (CBAM) tax. This has created some uneasiness for the industry. However, Goyal assured that the auto industry's interests will be taken care of and that they are in dialogue with the EU and other countries on CBAM.

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Goyal also spoke about the EV moment in India at the 63rd annual general meeting (AGM) of ACMA. He feels that usage of EVs in India is set to go up further. He expressed his desire to see more investment and more production of EVs in India.

The Indian auto industry has been on a dream run for quite some time. The auto component sector clocked its highest ever turnover last financial year and is counting a lot on Free Trade Agreements (FTA). The industry suggested that the government should sign FTAs with more Indian like-minded countries like Brazil.

Goyal, while talking on FTAs, said, “Most countries have put tariffs as a barrier for auto and component exports. Auto components will always have an increasing demand. We’re making fast progress on FTA with the UK and the EU. Received requests for FTAs from 5-6 more countries.”

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(Edited by : Vivek Dubey)

First Published:Sept 13, 2023 6:54 PM IST