Markets in India but jobs in China? Why govt isn't ready to bend for Tesla

The wait for Tesla electric vehicles (EVs) in India has no end in sight as while the US auto maker wants cuts in import duty for its products, the Indian government wants Tesla to manufacture products locally. Union Minister Krishan Pal Gurjar recently made the views amply clear when he said there cannot be a situation where the market is India but jobs are created in China.

File photo: A row of Tesla Model S sedans at its office in California. (REUTERS)
File photo: A row of Tesla Model S sedans at its office in California.

The Indian government has previously been categorical that Tesla needs to manufacture locally before any tax concessions can be considered. Responding to a query on Tesla in Lok Sabha on Tuesday, Gurjar, the Minister of State for Heavy Industries, once again highlighted the government's position and 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."

Gurjar was responding to a question by Congress member K Suresh. “Want to ask the member if they want India's money to go to China?" asked Gurjar. “That company has not applied as per our policy. For that (company), doors of India are open, they can come apply as per policy, set up company, give jobs to our people, increase government revenue."

Also check these Vehicles

Find more Cars
Tesla Model S (HT Auto photo)
₹70 Lakhs - 1 Cr* *Expected Price
View Details
Tesla Model 3 (HT Auto photo)
₹70 - 90 Lakhs* *Expected Price
View Details
Tata Sierra Ev (HT Auto photo)
₹25 - 30 Lakhs* *Expected Price
View Details
Mg 4 Ev (HT Auto photo)
₹30 - 32 Lakhs* *Expected Price
View Details
Tata Punch Ev (HT Auto photo)
₹12 - 14 Lakhs* *Expected Price
View Details
Maruti Suzuki Wagon R Ev (HT Auto photo)
₹10 - 14 Lakhs* *Expected Price
View Details

The EV movement in India is gaining momentum even if it is largely being powered by products in the two and three-wheeler space at the moment. Luxury car makers like Mercedes-Benz, Audi, Jaguar Land Rover and BMW have brought in products while mass-market players like Tata Motors, Hyundai and MG Motor India also have options available. But eyes are still peeled for Tesla, the world's largest EV player.

Tesla CEO Elon Musk, in a tweet reply recently, said that his company isn't in India yet due to ‘challenges with the government’. A number of state governments were quick to invite - and woo - Musk. From West Bengal to Punjab and Maharashtra, invites were sent across. But in the Indian context, crucial factors like import tax cuts can only be decided by the central government and at the moment, it appears Tesla may be reluctant to manufacture locally.

Also Read : Tesla CEO Elon Musk has found a friend in Aaditya Thackeray. Here is why

Globally, the Tesla facility in China's Shanghai is one of its largest and serves as a base for not just the Chinese market but products manufactured here are also sent to several European markets.

First Published Date: 09 Feb 2022, 10:55 AM IST
Recommended for you
View all
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
21% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 315 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
13% OFF
Jopasu Car Duster
Rs. 754 Rs. 869

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city