Tesla welcome to set shop in India, but shouldn't import from China to sell here: Nitin Gadkari

"Making in China and selling here is not a good proposition," Nitin Gadkari said during a government conference, Reuters reported.

In July 2021, Reuters reported citing sources that Tesla wrote to ministries in the Narendra Modi government, including transport and heavy industries ministries, as well as government think tank Niti Aayog making the pitch that cutting down import tax on fully assembled electric cars to 40 percent would be more appropriate.

Currently, the tax rate is 60 percent for cars priced below $40,000 and 100 percent for cars priced above $40,000.

Earlier, other luxury carmakers had also lobbied for a reduction in import duties but opposition from rivals with domestic operations prevented any success.

Tesla has reasoned that a 40 percent import duty will make the car more affordable but the threshold will be still high enough to compel the manufacturers to manufacture locally if demands grow.

On Jan 13, Tesla's top boss Elon Musk had confirmed his company's India operations with a two-word tweet.

Tesla has registered an Indian unit to start its operations in the country and started recruiting top officials for running the business in India while also deciding on showroom space.