The road transport and roads minister has asked Musk to come to India and produce.

Union Minister Nitin Gadkari said on Tuesday that if Tesla, located in California, is willing to build its electric vehicles in India, there would be "no difficulty," but the business must not import automobiles from China. Gadkari also stated during an interactive session at the Raisina Dialogue that India is a massive market with a lot of potential for fully electric vehicles.

There is no difficulty if Elon Musk is willing to produce in India, "Come to India, establish manufacturing, India is a vast market from which they can export," he remarked.

The road transport and roads minister has asked Musk to come to India and produce. But if he wants to produce in China and sell in India, it cannot be a good deal for India, according to Gadkari.

Last year, the heavy industries ministry also requested that Tesla begin producing its renowned electric vehicles in India before considering any tax breaks.

Currently, automobiles imported as fully built units are subject to customs duties ranging from 60% to 100%, depending on engine size and cost, insurance, and freight worth less than or greater than USD 40,000.

In a letter to the road ministry last year, the US corporation said that the effective import duty of 110% on cars with customs values over USD 40,000 is "prohibitive" to zero-emission automobiles.

It had asked the government to unify the tariff on electric vehicles at 40% regardless of customs value and to remove the 10% social welfare levy on electric vehicles.

It asserted that these improvements will help the growth of the Indian Electric Vehicle (EV) ecosystem, and that the firm would make large direct investments.

It added that these improvements would help the growth of the Indian EV ecosystem, and that the firm will invest considerably in sales, support, and charging infrastructure, as well as dramatically increase procurement from India for its worldwide operations.

The company argued that these proposals would have no negative impact on the Indian automotive market because no Indian An Original Equipment Manufacturer (OEM) currently produces a car with an ex-factory price greater than United States Dollar (USD) 40,000 (approximately Rs 30.6 lakh) and only 1% - 2% of cars sold in India have an ex-factory/customs value greater than USD 40,000.

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