Tesla manufacturing in China and selling in India is inedible : Nitin Gadkari.

In an exclusive interview with sources , Union Roads and Highways Minister and senior BJP leader Nitin Gadkari said that while Tesla is welcome in India, producing in China and selling in India is "not a palatable notion." Gadkari also claimed that he recently met with Tesla's India head to persuade them to build their own facility in India, citing India as a large market.

Tesla CEO Elon Musk's statement last month about challenges entering the Indian market caused a stir, prompting many states to openly encourage Musk to set up shop in their regions. "Tesla is welcome in India; we have no objections." The Indian market is enormous. The Indian automobile sector has a market capitalization of Rs 7.5 lakh crore. And all of the world's well-known manufacturers are represented, including BMW, Mercedes, Hyundai, Toyota, Volvo, and Honda. As a result, there is a sizable market," the Union Minister said.

Raut had inquired as to what type of tax relief the government intends to give the electric vehicle behemoth so that it may begin production in various states as planned. 

Tesla has expressed no interest in any of the government's electric vehicle initiatives, according to the minister.

"The mentioned firm has not participated in any of our schemes, and this has clarified their intents that Tesla merely wants to profit from our market and will not establish manufacturing facilities here." Thousands of employment will be created in China if they build their electric cars there, rather than for Indian kids here," he remarked.

According to the Ministry of Heavy Industries, the government created the FAME India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) Scheme in 2015 to promote the adoption of electric/hybrid vehicles (EVs) in India with the goal of reducing the country's reliance on fossil fuels.

Phase-II of the FAME India Scheme is currently being implemented for a five-year term, beginning April 12, 2019, with a budgetary support of Rs 10,000 crore.

In addition, the GST on electric vehicles has been decreased from 12% to 5%, and the GST on chargers/charging stations for electric vehicles has been reduced from 18% to 5%.

Also read : Government again turned down Tesla's request for tax relief