Tesla cars sold in India can't be digested because of Chinese manufacturing says Gadkari

Considering that Elon Musk is seeking tax rebates to do business in India, then manufacturing Tesla cars in China and selling in India is not an easy concept for all of us, according to Nitin Gadkari, the Union Minister for Road Transport and Highways.

As Gadkari explained in a media interview, he met the head of Tesla India "three or four days ago".

"I have tried to convince him. Ultimately it is dependent on him to take the decision (to manufacture in the country).

The minister said that Musk must first manufacture in India before he can deploy Tesla cars in India. "Now his (Musk's) interest is to manufacture the Tesla in China and sell it in India."

Therefore, if you start here, no problem. But manufacturing in China and selling in India is not a concept that can be digested by everyone.

Gadkari said the country cannot appease one automobile company when asked about Tesla's request to cut customs duties.

The market in India is enormous. All the world's auto giants are present here -- BMW, Volvo, Mercedes-Benz, Tototo, Honda, Hyundai. If one company receives a benefit, the other has to benefit as well. That is the practical issue," he said.

Tesla is not yet in India due to "challenges with the government", Musk wrote in a recent tweet.

Including three directors, Tesla has registered its office in Bengaluru as Tesla India Motors and Energy Private Limited. The company has Rs 15 lakh in authorised capital and Rs 1 lakh in paid-up capital.

Tesla has been criticized by Indian authorities earlier this week for seeking tax breaks on using the Indian market to sell its products, but not establishing manufacturing facilities in the country that could create thousands of jobs.

"We can't grant subsidies or relaxation in taxes to the said company as they don't want to set-up their manufacturing and other operation bases here. Why should we favour a company which creates jobs in China and mints profit from our markets?" Minister ofte for Heavy Industries, Krishna Pal Gujjar, told the Lok Sabha in response to a question.

As per the Ministry of Heavy Industries, the government has formulated a scheme, Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote the adoption of electric/hybrid vehicles (EVs) in the country with an aim to reduce dependency on fossil fuels.