‘Do you want India’s money to go to China?’ Govt responds to Tesla’s demands

Tesla seems to have hit a brick wall with its launch plans in India. The American EV manufacturer is wildly popular in most developed markets. However, the Indian govt maintains its stance with its plans to not reduce import duties on imported electric cars.

The govt reiterated its position on the demands of EV manufacturers like Tesla during the Question Hour in the parliament. On Tuesday, Minister of Heavy Industry, Krishan Pal Gurjar responded to a query raised by a fellow parliamentarian from the Congress party.

During the session, Congress member K Suresh asked the government about the steps being taken to promote the production of electric vehicles in the country. He also asked if the govt will invite Tesla to enter the Indian market.

In response to this Krishan Pal 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, doors of India are open, they can come apply as per policy, set up company, give jobs to our people, increase government revenue,” the minister said.

This response falls in line with the govt’s previous statements about Tesla’s entry into India. Earlier last week Vivek Johri, chairman of the Central Board of Indirect Taxes and Customs claimed that the government has already looked at the current tax structure.

The govt claims that some domestic production is already happening and some investments have come in with the current tariff structure. Observing these aspects, the Johri claimed that the current tax structure is not a hindrance for companies like Tesla.

In January 2022, Tesla CEO, Elon Musk said that the company is facing multiple challenges with the govt of India. He was responding to a query by an eager Tesla fan on the launch of the brand in the country.

Following the Tweet, numerous Indian states invited Elon Musk to set up a facility in India. Despite these invitations, Tesla cannot skip the central govt’s hold on import duties. Musk believes that India’s import duties are one of the highest in the world and this is the reason the company is delaying its launch.

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