Ola founder to Tesla, Hyundai: Build in India, not just import EVs

With Tesla reportedly lobbying for a drastic reduction in import duties on electric vehicles (EVs) in India and Hyundai backing Tesla for similar tax reliefs, Ola founder Bhavish Aggarwal hit back by saying that he “strongly disagrees” with the thought that reducing taxes, and import duties will help increase the demand for EVs in India and also generate revenue for the government.
“Let’s have confidence in our ability to build indigenously and also attract global OEMs to build in India, not just import. We won’t be the first country to do so,” tweeted Aggarwal.

Tesla is attempting to start selling its cars in India from this year. As per a report by Reuters, Tesla in a letter to ministries and Niti Aayog said that slashing government taxes on imports of fully assembled electric cars to 40% would be more appropriate.
“The argument is that at 40% import duty, electric cars can become more affordable but the threshold is still high enough to compel companies to manufacture locally if demand picks up,” the report said.
Minister for Road Transport & Highways Nitin Gadkari is said to have expressed interest in offering tax incentives if Tesla decides to make cars in India.
Market for high-end EVs is at its infancy mainly due to higher ownership costs in India and negligible car charging facilities around the country. “Just 5,000 of the 2.4 million cars sold in India last year were electric and most were priced below $28,000,” the report added.
Ola is entering the electric vehicles space in India with its Ola Electric scooter that is claimed to be the highest ranged two-wheeler EV in India with a range of 150 km and a top speed of 100kph. The company claimed that Ola Electric scooter has already got 1 lakh bookings.
Transport minister Nitin Gadkari told Reuters in March that India would be willing to offer incentives to ensure Tesla’s cost of production in the country is less than that in China, but only if it manufactures locally.