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Gadkari reiterates Tesla can't sell cars in India if it manufactures in China

auto | Apr 26, 2022 12:37 PM IST

Gadkari reiterates Tesla can't sell cars in India if it manufactures in China

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"Elon can’t manufacture in China, to sell in India," Gadkari said in an interview with CNBC-TV18, reiterating the government's stance against the American auto major that it says is reluctant to start a local manufacturing facility.

Minister of Road Transport and Highways Nitin Gadkari on Tuesday said that Tesla can sell its cars in India only if it manufactures them in the country, reiterating the government's stance against the American auto major that it says is reluctant to start a local manufacturing facility.

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"India is a huge market... The export availability - ports are available, they can make their export from India... But suppose he (Tesla CEO Elon Musk) wants to manufacture in China and sell in India, it cannot be a good proposition for India," Gadkari said.
"If Elon Musk is ready to manufacture in India, there is no problem. We have got all competency, the vendors are available, we have got all types of technology," he said, adding that the government was inviting the company to come to India for manufacturing.
Gadkari was speaking on the second day of the three-day Raisina Dialogue.
Musk in the past has expressed that though Tesla wanted to enter the Indian market, the company was facing a lot of challenges due to not enough tax benefits.
The Musk-led company had sought a reduction in import duties on electric vehicles (EVs) in India, however, the government asked the firm to manufacture its vehicles in the country before any tax concessions can be considered.
In India, the government levies a 60 percent import tax on electric vehicles priced $40,000 or less, while 100 percent is levied on the ones costing above $40,000.
Earlier as well, Gadkari had said that Tesla is welcome in India but manufacturing elsewhere and selling in India was “not a digestible concept”.
The government earlier this year made it clear that relaxations will not be provided to the US-based electric vehicles major unless it participates in manufacturing activities in India. It added that there can't be a situation where the market is India but jobs are created in China.
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