India’s EV Policy Not Just For Tesla, Says Amitabh Kant

Amid Tesla’s much-anticipated entry into India and the delays in that regard, India’s G20 Sherpa Amitabh Kant said that the government’s EV policies are not tailored for one company alone. 

“You can’t have policies for individual companies”, Kant was quoted as saying, when asked about the delays with regards to Tesla entering the Indian market. 

Tesla founder and CEO Elon Musk was slated to visit India in April this year, amid plenty of hype around the company’s foray into India. However, Musk cancelled the visit, leading to speculation that Tesla may back out of its plans for India

According to an ANI report, Kant added that India drafted its EV policy keeping all the companies in mind and the companies must abide by the policies. 

India recently introduced a policy to promote EV manufacturing in India by incentivising international manufacturers to establish a manufacturing base in India. 

The policy was said to be brought in to address a long-standing demand by Tesla to be able to enter India.

As per the policy, the tariff on imports of EV would be reduced to just 15% from 75%-100%, provided OEMs invest a minimum of $500 Mn to set up manufacturing plants in India.

Reports before Musk’s cancelled visit said the EV giant has started production of right-hand drive cars at its plant in Germany. Tesla was reported to be mulling a manufacturing plant in Telangana, Gujarat or Tamil Nadu, with a potential investment of $2 Bn.

Besides Tesla, Vietnamese OEM VinFast said it would invest $2 Bn in India and started building an EV factory in Tamil Nadu. Further, a host of ride-hailing players are looking to increase the share of EVs in their fleet and are signing deals with OEMs and fleet operators for the transition.

Interestingly, Ola Electric also has plans for an electric car by 2025 or 2026, and the entry of global players such as Tesla or other large OEMS is likely to accelerate those plans for the Bhavish Aggarwal-led company.