© Reuters. US automaker Tesla is welcome to set up shop in India and manufacture cars there, but must not import vehicles from China, India’s transport minister said on Tuesday. /File Photo/REUTERS/Arnd Wiegmann
NEW DELHI (Reuters) – U.S. automaker Tesla (NASDAQ:) is welcome to set up shop in India and manufacture cars there, but must not import vehicles from China, India’s transport minister said on Tuesday.
“Making in China and selling here is not a good proposition,” Minister Nitin Gadkari told a news conference.
Tesla is seeking to import and sell its electric vehicles in India, and has been lobbying authorities in New Delhi for nearly a year to reduce tariffs, which the company’s chief executive Elon Musk said. are among the highest in the world.
His efforts have so far been unsuccessful. Official Indian sources said in January that they were unconvinced by Tesla’s lobbying.
The company has not unveiled an investment plan in the country, a move that would be in line with Prime Minister Narendra Modi’s “Make in India” vision, which aims to boost local manufacturing and create jobs.
Nearly half of the vehicles sold by Tesla worldwide last year were made at its Chinese factory in Shanghai.
Chinese Foreign Ministry spokesman Wang Wenbin also said Monday, in reference to Elon Musk’s takeover of Twitter (NYSE:) that speculation that Beijing could use ties to Tesla to influence the social network content were unfounded.
(Reporting Aditi Shah and Martin Quin Pollard; French version Valentine Baldassari; editing by Kate Entringer)