Tesla, Elon Musk Welcome To India But Only As Per Govt Policies, Says Union Heavy Industries Minister

Union Minister Mahendra Nath Pandey has said US electric carmaker Tesla and Elon Musk are welcome to India but the Centre will not compromise on the policy of Aatmanirbhar Bharat or self-reliant India in any way

Last month, Tesla CEO Elon Musk had said that the company, which has been seeking reduction in import duties to sell its vehicles in India, will not manufacture its products locally unless it is allowed to first sell and service its cars in India.

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Union Minister Mahendra Nath Pandey has said US electric carmaker Tesla and Elon Musk are welcome to India but the Centre will not compromise on the policy of Aatmanirbhar Bharat or self-reliant India in any way, the PTI reported.

The Minister for Heavy Industries and Public Enterprises said: “The government under the leadership of Prime Minister Modi has moved ahead swiftly on the Aatmanirbhar Bharat policy and received a very good response on it and we are not going to compromise on that in any way. Tesla, Elon Musk are welcome to India but only according to the country's policies.”

Last month, chief executive officer (CEO) of Tesla, Musk, had said that the electric car company, which has been seeking reduction in import duties to sell its vehicles in India, will not manufacture its products locally unless it is allowed to first sell and service its cars in the country.

“Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars," Musk had said in a tweet responding to a user asking about Tesla's plans to set up a manufacturing plant in India.

In August last year, Musk had said Tesla may set up a manufacturing unit in India if it first succeeds with imported vehicles in the country.

Currently, India imposes 100 per cent import duty on fully imported cars with CIF (Cost, Insurance, and Freight) value more than $40,000 and 60 per cent on those costing less than the amount.

Tesla’s key executive, who was leading the lobbying effort for the US electric carmaker in India, resigned last week.

The executive with policy and business development of Tesla in India, Manuj Khurana, was hired in March 2021 and played a key role in forming a domestic market-entry plan for the US auto giant in the country.