More troubles for Tesla: Indian govt rejects idea of market in India but jobs for China
Last updated on February 17th, 2022 at 10:43 am
The government of India has made its stand clear over entry of United States-based electric vehicles major Tesla. Union Minister Krishan Pal Gurjar said on Tuesday that tax relaxations wouldn’t be provided to Elon Musk founded Tesla unless it also establishes its manufacturing operations in India. The union minister made it clear that it cannot be done that Tesla wants to enter the Indian market but creates jobs in China through manufacturing units in the neighboring country.
Union Minister Krishan Pal Gurjar said “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 union minister of heavy industries clarified during the Lok Sabha’s Question Hour that Tesla is yet to apply for schemes, as required under the government’s policy. “For the promotion of EVs, there are schemes and the benefits are that advanced technology will come to India and parts will also be manufactured here. People will get jobs and consumers will get cheaper vehicles,” the minister said.
The reply by the minister came in response to a question raised by Congress member K Suresh if Tesla is being invited to the Indian market. Gurjar said, “Want to ask the member if they want India’s money to go to China? That company has not applied as per our policy. For that (company), doors of India are open, they can come to apply as per policy, set up company, give jobs to our people, increase government revenue.”
Elon Musk has sought a cut-off in import duties on electric vehicles (EVs) in India. But Ministry of Heavy Industries has asked the electric vehicle giant to first establish a manufacturing unit in India before any discussions over tax concessions. Last month, Tesla founder Elon Musk had said that the company is experiencing multiple challenges for launching its vehicles in India and that lot is to be worked on with the Indian government.