Joint Venture agreement between Tesla and Indian Automobile Companies

To encourage alternate pollution free transport in the country, Department of Heavy Industry has formulated FAME - India Scheme [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] having thrust on hybrid and electric vehicles to become the first choice for the purchasers so that these vehicles can replace the conventional vehicles and thus reduce fossil fuel consumption in the country from the automobile sector. The Government is offering incentive in the form of upfront reduction of price to the consumer who buys electric/hybrid vehicles under this scheme, which is specified in the Gazette Notification S.O. 830 (E) dated 13th March, 2015.

The Ministry of Road Transport and Highways (MoRTH) has also issued following notifications to encourage alternate pollution free transport in the country, which are available in the website of MoRTH:-

 

(i) GSR 682(E) dated 12/07/2016 regarding mass emission standard for flex-fuel (E 85) or (E 100) and ethanol (ED 95) vehicles.

(ii) G.S.R. 412(E) dated 11/04/2016 regarding Biodiesel.

(iii) G.S.R. 629(E) dated 24/06/2016 regarding retro-fitment of Hybrid Electric Vehicles.

Automobile Industry was delicensed in July 1991 with the announcement of the New Industrial Policy. The passenger car was however delicensed in 1993. The norms for foreign investment and import of technology have also been progressively liberalized over the years for vehicles manufacturer including passenger cars in order to make this sector globally competitive.

Therefore the Department of Heavy Industry, Government of India is, at present, not aware of any such joint venture agreement between Tesla, the US based electric car manufacturing company and Indian automobile companies.

The Government has not made any such offer formally.

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