Heavy industries minister says Tesla, Musk welcome but should comply with Govt directives

New Delhi: Mahendra Nath Pandey the Union minister on Saturday said that although Elon Musk and Tesla are welcome to India, the policy of Aatmanirbhar Bharat or self-reliant India will not be compromised by the government.

Elon Musk, Tesla's founder and chief executive, has said last month that they seek to get a reduced import tariff on vehicles sold in India, and added that they will not manufacture products locally unless the cars are first allowed to be sold and serviced in the country.

In an answer to a user tweeting about Tesla's intention in setting up a manufacturing unit in India, Musk said, "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 while talking at the Global Summit on TV9 on Saturday said: "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, Elon Musk are welcome to India but only according to the country's policies," the minister said.

Musk in August last year said that Tesla would set up a manufacturing unit in India if their first imported vehicles were successfully sold. At present, India levies 100 per cent import duty on fully imported cars with CIF (Cost, Insurance, Commodity) value of over US $ 40,000 and 60 per cent on those priced below that amount.

With inputs from PTI