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The eagerly anticipated India proposal from Elon Musk-led electric manufacturer Tesla now appears to be picking up steam after languishing for a while. Tesla, a manufacturer of electric vehicles, is aggressively pursuing discussions with the Indian government to set up a local manufacturing facility in the country. This tactical approach intends to allow Tesla to produce EVs in India and sell them for a lower price tag.&nbsp;A recent industry report stated government sources as saying that Tesla intends to build up to 500,000 electric vehicles per year with a starting&nbsp;pricing of Rs 20 lakh. If successful, this development might have a big positive impact on India's developing EV industry.&nbsp;According to the report, which cited government sources, the company helmed by billionaire Elon Musk is also considering utilising India as an export hub as it prepares to export cars to nations in the Indo-Pacific region.

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<h2>India to Become Tesla's Export Hub</h2>

Tesla plans to use the facility as an export base, just like it does with its operations in China. The company had shown interest in establishing local manufacturing in India in May.&nbsp;Given the participation of local manufacturing and exports, sources included in the report characterised Tesla's strategy as ambitious and expressed confidence in favourable results. There is no doubt that both Tesla and India would gain from the development of a local manufacturing base.&nbsp;Taking advantage of the rising demand for EVs&nbsp;would provide the auto&nbsp;giant&nbsp;access to the market that is rapidly expanding in the world. In addition, it signifies one more step India has taken towards becoming a powerhouse for global manufacturing.&nbsp;Tesla hopes to increase sales and strengthen its competitive edge in the emerging Indian EV market by localising production and lowering the price of its vehicles here.&nbsp;

Significantly, Tesla had previously announced plans to join the Indian market but later decided against it owing to high tax rates that made its already-expensive automobiles inaccessible to the majority of Indian buyers. If Tesla's aim to set up local production in India is successful, it would be a big accomplishment for the firm, opening doors to a sizable market and supporting India's industrial growth as a leading player in the EV industry.

Also Read:&nbsp;<a href="https://www.autox.com/news/industry-news/elon-musk-says-tesla-coming-soon-to-india-post-pm-modi-meet-in-new-york-113673/">Elon Musk Says 'Tesla Coming Soon to India' Post PM Modi Meet in New York</a>

<h2>The US&nbsp;Meeting</h2>

Tesla's interaction with the government resumed in May when a delegation from the firm visited India ahead of PM Modi's US visit. After their meeting in the States, Musk disclosed that the PM was compelling him to increase his bet on India.&nbsp;"He really cares about India because he's pushing us to make significant investments in India, which is something we intend to do. We are just trying to figure out the right timing ... I am confident that Tesla will be in India and will do so as soon as humanly possible," said Musk about the Indian Prime Minister&nbsp;after the meet. The Indian market has long been Tesla's target, but the firm has only occasionally taken steps in this direction.

Given that EVs are still somewhat more expensive than this, the Rs 20 lakh price tag might be a big selling point for buyers in India. Prices for EVs and conventional ICE vehicles still vary significantly. The disparity is decreasing, and industry experts predict that lower pricing may encourage more Indian people to opt for EVs.

<a href="https://timesofindia.indiatimes.com/auto/news/tesla-in-talks-to-set-up-india-factory-for-electric-cars-starting-20l/articleshow/101711286.cms?from=mdr">Source</a>

Tesla Holds Talks to Set up India Factory, EV Prices Could Begin at Rs 20 Lakh

Tesla is aggressively pursuing discussions with the Indian government to set up a local manufacturing facility in the country. A recent industry report stated government sources as saying that Tesla intends to build up to 500,000 electric vehicles per year with a starting pricing of Rs 20 lakh.

Ministers seek uniform road tax for vehicles across country

India should have a uniform road tax structure for vehicles across states, a group of ministers (GoM) has proposed.



The Government of India has proposed a deadline to discontinue the registrations of BS-IV vehicles.

The Indian government has released a draft notification to amend the Central Motor Vehicles Rules to discontinue the registrations of BS-IV compliant vehicles which are manufactured before April 1, 2020, after June 30, 2020.

In November 2017, the government confirmed their plans to leapfrog BS-V emission norms all together and move directly to BS-VI standards from April 1, 2020, for all petrol and diesel vehicles as a step towards working to curb the country’s air pollution problems. BS-IV grade fuel will be introduced as early as 2018 and will be available in the northern region of the country initially, following which its availability in other regions will be done in a phased manner.

The draft currently issued by the Ministry of Road Transport and Highways to amend the Central Motor Vehicles Rules has invited the public, stakeholders and affected people to provide suggestions or objections by December 20, 2017, which will be up for consideration.

The notification states that the new amendment to the Central Motor Vehicles Rules 2017, will be implemented on the day the of the final publication of the Official Gazette.

Indian Government proposes BS-IV vehicle registration deadline of June 2020

The Indian government has released a draft notification to amend the Central Motor Vehicles Rules to discontinue the registrations of BS-IV compliant vehicles which are manufactured before April 1, 2020

The Indian government is formulating a policy to phase out trucks and buses over 15-years old, and provide financial incentives.
The Government of India will introduce a policy to mandatorily phase out and retire all trucks and buses currently plying on Indian roads which are over 15-years old. The government will also provide financial incentives to owners who will replace the old vehicles for new ones.
In the first phase of the move, the Government will try and cover nearly 11.5 lakh heavy trucks and busses. The second phase is expected to cover 60 lakh vehicles.
A meeting between Finance Minister, Arun Jaitley and Transport Minister, Nitin Gadkari, on Wednesday, discussed the issues the government currently faces to execute the phasing out of old and polluting heavy trucks and buses in India.
Following which Gadkari was reported to have said that the Finance Minister feels that scrapping of pre-bharat stage vehicles should be mandatory and not voluntary. However, the he does not support the reduction of excise duty as an incentive, but is willing to make a budget provision for a direct cash incentive.
This initiative by the centre comes at a time when the the entire country as a whole, especially the major metropolitan cities like Delhi NCR is suffering from issues of air pollution. The first phase of the move will include only old vehicles which make up 2.5% of the all vehicles that qualify in the category are reportedly responsible for 60% of vehicular pollution.
Reports claim that the finance ministry feels that unless the move is made mandatory, owners will not phase out their old trucks, which is why the policy should be made as an option.
The cash incentives the government would have to invest in, would surmount to be up to Rs. 4,000 crore. However, the sale of new vehicles could collect an overall revenue of around Rs. 18,000 crore for the government which is significantly more that the invest it is required to make. Additionally, newer trucks and buses are more fuel efficient and that would lead to major savings in imports of crude oil.
Also Read: <a href="https://www.autox.com/news/industry-news/supreme-court-lifts-ban-on-diesel-vehicles/" target="_blank">Supreme Court lifts diesel ban in Delhi-NCR</a>

Indian government to phase out 15-year old trucks and buses

The Indian government is formulating a policy to phase out trucks and buses over 15-years old, and provide financial incentives.
The Government of

Indian Government

Tesla Holds Talks to Set up India Factory, EV Prices Could Begin at Rs 20 Lakh

Ministers seek uniform road tax for vehicles across country

Indian Government proposes BS-IV vehicle registration deadline of June 2020

Indian government to phase out 15-year old trucks and buses

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