Tesla, Elon Musk welcome to India but only as per govt policies: Minister

Tesla has been seeking reduction in import duties to sell its vehicles in India, but won't manufacture its products locally unless it is allowed to first sell and service its cars in India, Musk said.

Elon Musk and Tesla are welcome to India but the government will not compromise in any way on the policy of Aatmanirbhar Bharat or self-reliant India, Union minister Mahendra Nath Pandey said on Saturday.

American electric carmaker Tesla, which has been seeking reduction in import duties to sell its vehicles in India, will not manufacture its products locally unless it is allowed to first sell and service its cars in the country, company founder and chief executive Elon Musk had said last month.

"Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars," Musk had said in a tweet responding to a user asking about Tesla's plans to set up a manufacturing plant in India.

Addressing The Global Summit by TV9 on Saturday, the Minister for Heavy Industries and Public Enterprises 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," he added.

In August last year, Musk had said Tesla may set up a manufacturing unit in India if it first succeeds with imported vehicles in the country.

Currently, India imposes 100 per cent import duty on fully imported cars with CIF (Cost, Insurance and Freight) value more than USD 40,000 and 60 per cent on those costing less than the amount.