Tesla welcome but manufacturing in China, selling in India “not a digestible concept”: Nitin Gadkari to CNN-NEWS18

Tesla is welcome in India but manufacturing in China and selling in India is “not a digestible concept”, Union Roads and Highways Minister and senior BJP leader Nitin Gadkari told CNN-NEWS18 in an exclusive interview. He said there has been an interaction with the India head of Tesla recently to convince them to set up their own plant here given the country is a huge market.

Elon Musk’s tweet last month about Tesla facing problems in entering the Indian market had created a stir, leading to many states openly inviting the Tesla CEO.

“Tesla is welcome in India, we don’t have any problem. The Indian market is a huge market. The Indian automobile industry’s turnover is Rs 7.5 lakh crore. And all the reputed brands in the whole world -- BMW, Mercedes, Hyundai, Toyota, Volvo, Honda -- are here. So there is a huge market,” the Union Minister said.

Gadkari said Musk was looking to manufacture Tesla cars in China and sell in India. “We request him that you can start your own plant here. We have all ancillaries available here, you can get quality production here and you can get good sale here. So if you start here, you are welcome, no problem. But manufacturing in China and selling in India is not a digestible concept to all of us,” the Union Minister made it clear. He also revealed that about three-four days ago, he had an interaction with the India head of Tesla and he has tried to convince them. “Ultimately it depends on him to take the decision,” he said.

Tesla has also complained of not enough tax benefits on offer in India. “Actually we don’t have one company - we have all the world giants present in Indian market. If we give one benefit to one company, we have to give that benefit to other companies also. That is the practical problem,” Gadkari argued.

Gadkari claimed that within two years, by getting good manufacturing numbers, the cost of electric two, three, and four-wheelers and even buses will be equal to petrol and diesel vehicles' cost. “We can achieve that,” he said, terming it a “number game”. He said e-vehicle growth had increased in big cities like Mumbai, Pune and Delhi and within two years, there will be electric buses in all corporations. “Lithium-ion batteries now being manufactured here, but we are developing zinc-ion, sodium-ion and aluminum-ion so that this new chemistry is helpful for industry. We are moving towards green hydrogen. Green hydrogen is the fuel for the future and my idea is to export green hydrogen to the whole world,” he said.

Gadkari said that India was importing crude oil, gas and petroleum worth Rs 8 lakh crore and wants to replace it with alternative fuel like ethanol, methanol, bio-diesel, CNG, electric, bio-LNG and green hydrogen. “I am confident as transport minister that within three years, we are going to establish all kinds of technology manufacturing in India and India will be the No. 1 manufacturing hub of automobiles in the world within five years — we aim to take the turnover of this sector to Rs 15 lakh crore from Rs 7.5 lakh crore,” he said.

Gadkari added that the sector has maximum employment potential and contributes significantly to GST revenue of states and the centre which will play a crucial role in India’s growth story.