NITI Aayog CEO Amitabh Kant on Monday said discussions are on with EV manufacturer Tesla over its proposal for duty cuts to enter the Indian market and said a decision would be taken soon.
Kant told CNBC-TV18 that the final decision to reduce duty would be taken by the Union finance ministry's revenue department.
Tesla’s proposal for duty waiver has drawn opposition from key players in the India automotive space. Kant said Tesla has a valuation higher than the next 11 players put together.
As per officials in the loop, there are fears that an import duty waiver would lead to an increase in electric cars being imported, rather than drive manufacturing in India.
India has set a target of 2070 to achieve net zero carbon emission and to that end, has been encouraging the adoption of electric vehicles and the use of alternative fuels like ethanol, bio-LNG, and green hydrogen.
One issue, Kant said, was that Tesla isn’t committed to a full-fledged launch in India; the Elon Musk-run company will test waters for a couple years.
"For a company like Tesla, to make in India, to make that kind of investment and then make in India for the world, they want to test the market for a couple of years. So those are issues which are being discussed," he said.
The Indian government has asked Tesla to source Indian-made component kits, but the carmaker said its cars cannot be assembled from kits. The primary aim, Kant said, is to enable Tesla to manufacture vehicles in India. "Our objective as a country has to be that Tesla makes in India, and makes in India for the world; that is our first challenge," Kant said.
Emphasising the need for green technology moving forward, Kant predicted that there is no future for internal combustion-run two and three-wheelers beyond 2025.
“In the next two years you will see the cost of batteries falling faster and therefore the initial cost of electric vehicles will be much cheaper than combustion vehicles. I foresee that by 2025, young people will not buy combustion vehicles anymore because it will be cheaper to buy electric vehicles. For two-wheelers and three-wheelers, the future beyond 2025 is only electric vehicles," Kant said.
He said the world is moving away from investing in combustion technology and that most green companies are attracting capital. Kant said the world will stop valuing or investing in combustion technology.
Source : https://www.msn.com/en-in/money/news/discussions-on-duty-cuts-ongoing-with-tesla-niti-aayog-ceo/ar-AARwoza578