It seems the government is not in a mood to indulge Tesla too much in its manufacturing plans in India, and there is a doubt already about whether Elon Musk is at all serious about manufacturing here as the automaker already has four manufacturing facilities (three in the US and one in China) and announced setting up of two more giga factories – in Texas (US) and Berlin (Germany).
However, when it comes to India factory, Musk has been vocal about need of government support (tax cuts) for its operations in India.
Though, it has already incorporated an office in Bengaluru, it may use it for assembly or a research and development centre.
According to a senior government official, Tesla has not shared any proposal to be part of the production linked incentive (PLI) scheme for automobile and auto component industry in the country.
“We have not changed our stand...from day one we have been telling them (Tesla) to make in India. So logically why should we encourage a product which is imported (import from Tesla China or anywhere else) and also why should we encourage such company?,” Arun Goel, Secretary, Ministry of Heavy Industries, told BusinessLine.
Goel explained that the government is saying ‘make it 100 per cent in India’, but at least source maximum parts from here. He said the Indian automobile industry is already producing so many parts and companies which are manufacturing here, are sourcing from here.
PLI scheme
He said Tesla has also not sent any proposal for investment while many global companies have submitted their proposals and has crossed government’s estimated target of ₹42,500 crore.
Some of the companies include Ashok Leyland, Eicher Motors, Ford India, Hyundai Motor India, Kia India, Mahindra & Mahindra, Suzuki Motor Gujarat and Tata Motors.
In the two/ three-wheeler categories, the companies include Bajaj Auto, Hero MotoCorp, Piaggio Vehicles and TVS Motor Company.
Recently, Transport Minister Nitin Gadkari also had urged Tesla to make in India instead of importing its cars from China.