On June 18, Union Heavy Industries Minister Mahendra Nath Pandey encouraged Tesla creator Elon Musk to establish his company in India but emphasised that the government will not budge on the Aatmanirbhar Bharat policy in any manner.
Tesla CEO earlier in May 2022 made it clear that his company would not produce its goods locally until it is first permitted to sell and repair its automobiles in the nation. Musk had previously stated that if Tesla initially succeeds with imported automobiles in India, it may open a production facility. Regarding Tesla’s intentions to establish a manufacturing facility in India, Musk had tweeted in response to a user’s query, ‘Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars’.
The Minister for Heavy Industries and Public Enterprises said in a The Global Summit on TV9 on Saturday, ‘The government under the leadership of Prime Minister Modi has moved ahead swiftly on the Aatmanirbhar Bharat policy and received a very good response on it, and we are not going to compromise on that in any way. Tesla and Elon Musk are welcome to India but only according to the country’s policies’.
India now levies a 100% import charge on fully imported vehicles with a CIF (Cost, Insurance, and Freight) value over USD 40,000 and a 60% levy on vehicles that cost less.