Chaired by American political fame Elon Musk, Tesla Motorworks has always shown a keen interest to operate in and through Indian lands for the manufacturing and exporting fronts respectively. But its seems the execution might have to wait more, as some misunderstandings sprout up between the govt. and the company.
2015- Prime Minister Narendra Modi visited Tesla's facility in San Jose and discussed his over the edge wait for the company to set their foot in our country. He also discussed some major technological advancements that he is looking forward to with the coming of the company to India, electric cars for instance with which he supposedly wishes to change the look of our transportation system by 2030.
2016- Transport Minister Nitin Gadkari offers profitable yet cost effective lands fruitful enough to operate South and South East Asian countries' export business with the aim to convince the manufacturers to make India its Asian manufacturing site.
2017-Prime Minister again shows interest for the homecoming of the company. Elon Musk reveals hi plan to debut with their mechanised-for-performance car "Model 3", taking advantages of FAME policy and other advantages.
Latest, the company drew its apprehensions towards the govt. over the sourcing of the components of the vehicles manufactured here. They asked if it is mandatory to source components of Indian origin only, as was told to them by some Indian official, which would cost them 30% extra over the manufactured units. Tesla shared his concern in a recent tweet saying, "Maybe I'm misinformed, but I was told that 30% of parts must be locally sourced and the supply doesn't yet exist in India to support that" to which, the ministry replied that "FDI policy also permits wholesale of imported goods in India without sourcing conditions," the ministry said.
The ministry cleared out that it isn't a compulsion to source Indian goods for that matter, a foreign producer in India may sell its products in what so ever way he or she wishes to and it is applicable only on trading retail products. In case a company wants to open up as a completely self-owned company with a single brand retail, only then it is responsible for paying 30% VAT.
