New Delhi: In an another blow to the US-based electric auto major Tesla, the central government has made it clear to the company that relaxations will not be provided unless it participates in manufacturing activities in India.
The Minister of State for Heavy Industries Krishan Pal Gurjar told the Lok Sabha during Question Hour that there cannot be a situation where the market is India but jobs are created in China. Tesla is yet to apply for schemes according to the government’s policy, the minister said.
Tesla is desperate to import and sell its electric vehicles in India and has for nearly a year lobbied officials in New Delhi to reduce tariffs, which the company’s CEO Elon Musk said that tax are among the highest in the world.
Indian official sources said they have been unconvinced by Tesla’s lobbying as the company has not yet shared any firm plan to invest in the country, something that would be in line with Prime Minister Narendra Modi's ‘Make in India’ vision to boost local manufacturing and create jobs.
The company sought a reduction in import duties on electric vehicles (EVs) last year but the ministry of Hheavy industries asked them to start manufacturing EVs in the country before any tax concessions can be considered. India has also asked Tesla to consider importing so-called knocked-down units or partially built vehicles, which attract a lower import levy, instead of fully-built units.
The minister said the government has production-linked incentives (PLI) for automobile and auto components as well as for manufacturing advanced chemistry cell (ACC) battery. Both schemes are open for domestic as well as foreign entities. “The company wants workers from China and market of India. This is not possible in Modi government... our government’s policy is that if India market is to be used, job opportunities will have to be given to Indians,” the minister added.
Last month, Tesla Founder and CEO Elon Musk had said the company was working through a lot of challenges with the government to launch its products in India.