Union Minister Nitin Gadkari on Tuesday once again offered Tesla to make cars in India after a Twitter deal. He said during Raisi’s dialogue program that if Elon Musk wants to make Tesla in India, then there is no problem. We have all the capabilities, we have all the technology, so they can bring down the cost.
Made in China Tesla will not run in India
Gadkari also invited Musk to visit India. “I urge them to come to India and start production here,” he said. India is a big market. Ports are available here. They can export from India. However, with this he again ruled out the possibility of ‘Made in China’ Tesla entering India. He said, “He (Musk) is welcome in India, but if he wants to produce in China and sell it in India, it is not good for India. We request you to come to India and produce in India.
Tesla’s demand turned down
Actually, Tesla, the electric car company of the world’s richest man Elon Musk, has been desperate to enter the Indian market for a long time. The company is seeking tax exemption from the Government of India. The Indian government has repeatedly rejected Tesla’s demand for a tax break and clarified that it cannot be met. Musk’s company Tesla wants to import its vehicles into India and for this it needs tax exemption. On the other hand, the Indian government has been urging the company to manufacture the vehicles locally instead of importing them.
So much tax is levied on ready-made electric vehicles
Musk’s company Tesla currently manufactures its vehicles in Germany and China, in addition to the United States. The company imports from the Chinese factory to the Asian and European markets. Union Minister Nitin Gadkari has said on several occasions that Tesla should consider setting up a factory here instead of dumping Made in China vehicles in India. The Government of India currently imposes 100% duty on the import of fully finished electric vehicles. The cost of such vehicles is directly doubling thereby reducing their ability to compete. On the other hand, the government levies 15 to 30 per cent duty on the import of electric vehicle parts. The government’s strategy is aimed at persuading outside companies to set up factories in India.