India will not modify its policies to particularly suit Tesla: Piyush Goyal

India will not modify its policies to appease US electric automobile company Tesla, instead, its laws and tariff regulations will be designed to entice global manufacturers of all-electric vehicles to establish a presence in the fastest-growing economy in the world, Commerce and Industry Minister Piyush Goyal said.

Tesla is requesting an initial concession on tariffs that would enable it to deduct 70% of customs duty on vehicles under USD 40,000 and 100% of duty on vehicles over USD 40,000.

Goyal stated in a PTI interview that the government understands the need for a thriving electric vehicle (EV) ecosystem because increasing the usage of battery-powered vehicles will reduce carbon emissions and the prohibitively high cost of oil imports.

However, he stated that in this case, policies would not be customised to fit the needs of a single business, but rather ones that will entice global producers of all-electric vehicles to establish operations in India.

Giving glimpses of the potential future investments, Goyal further said that the government of India is having dialogues with different stakeholders from across the world including Europe, the US, Japan and Korea. However, he suggested that the talks are right now on a negotiation level only.

Tesla stated that the concession was required to construct a factory in India. Excessive motor vehicle tariffs, intended to increase domestic manufacturing, have also been a source of persistent problems for international automakers.

While replying to Tesla’s demand, Goyal clarified that the Indian government do not tailor policies for any individual company’s interest. 

"Everyone is allowed to express their needs. However, that does not imply that the government would necessarily act on your demands," he stated.

When it opens, the Indian plant will be Tesla's sixth auto manufacturing facility.

Currently, the percentage of customs tax applied to automobiles imported as completely built units (CBUs) varies from 60% to 100%, based on the engine size, cost, insurance, and freight (CIF) value of USD 40,000 or more.