Tesla manufactures in China and sells in India not digestible : Gadkari : The Tribune India
New Delhi, February 12
Union Road Transport and Highways Minister Nitin Gadkari says making Tesla in China and selling in India is not a digestible concept for all of us as Elon Musk continues to push for tax cuts for sell his electric car in the country.
In a media interview, Gadkari said he met the head of Tesla’s Indian branch “three or four days ago.”
“I tried to convince him. In the end, it’s up to him to make the decision (to manufacture in the country),” Gadkari told News 18.
Emphasizing that Musk must manufacture here first in order to deploy Tesla cars on the roads, the minister said: “Now his (Musk’s) interest is to manufacture the Tesla car in China and sell it in India.
“So if you’re starting here, you’re welcome, no problem. But making in China and selling in India is not a digestible concept for all of us.”
Asked about Tesla’s request to reduce tariffs on electric cars, Gadkari said the country could not appease a single auto company.
“India is a huge market. We have all the car giants of the world — BMW, Volvo, Mercedes-Benz, Toyota, Honda, Hyundai — present here. If we give a company an edge, we have to give that benefit to other companies as well. That’s the practical problem,” he explained.
Musk recently tweeted that he was facing challenges from the government for marketing his products in India. “Tesla is not in India yet due to ‘challenges with the government,'” he posted.
Tesla registered its office in Bengaluru as Tesla India Motors and Energy Private Limited and appointed three directors. The company is registered with an authorized capital of Rs 15 lakh and a paid up capital of Rs 1 lakh.
Earlier this week, the government questioned Tesla’s business practices of seeking tax breaks to use the Indian market to sell its products, but not wanting to set up manufacturing facilities in the country that can generate thousands of dollars. jobs.
“We cannot give subsidies or tax breaks to the said company because they do not want to set up their manufacturing bases and other operations here. Why should we favor a company that creates jobs in China and that the currencies benefit from our markets? Heavy Industries Minister Krishna Pal Gujjar told the Lok Sabha in response to a question.
“Our prime minister has a vision for all these foreign companies, if you want to sell your product in our country then make it here only,” Gujjar added.
The minister informed the house that Tesla had shown no interest in any of the government’s plans for electric vehicles.
According to the Ministry of Heavy Industries, the government formulated a scheme, Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote the adoption of electric/hybrid vehicles (EV) in the country. . with the aim of reducing dependence on fossil fuels.