‘Gave them two options…’: Piyush Goyal says Elon Musk’s Tesla is welcome to come and make in India

Union Minister of Commerce & Industry Piyush Goyal said Elon Musk-headed Tesla was welcome to come to India and manufacture here. Speaking about the subsidies that Musk had asked for, Goyal said that the government had given them two options. 

Speaking to CNBC in an interview, Goyal said, “Prime Minister Modi has very rightly articulated sustainability from the lens of consumer and the consumption practices. So, therefore, electric vehicles come into that category. And we in India, big on electric vehicles…our Indian companies are doing us proud, Tatas and Mahindras… a number of foreign manufacturers have also started making electric vehicles in India. We invite all of them. Tesla is equally welcome to come and enjoy the huge market opportunity.”

Speaking about Musk’s demands for subsidies said, “We have come out with an electric vehicle policy to encourage companies to come and manufacture in India. We have allowed them two options – one is we give subsidies for those who are willing to come and manufacture in India. If you are not looking at that subsidy then we allow a second alternative that you can import vehicles at a lower import duty to help them to create the market and the charging infrastructure, and within that time they can do their committed investments in the country.” 

Goyal’s remarks come after Elon Musk created quite a stir by skipping his India trip earlier this year, where he was scheduled to meet Prime Minister Narendra Modi, but had soon after visited China. Musk’s trip to India was long-awaited amid years of ongoing talks between Tesla and the government for the automaker’s foray into the Indian market. 

Musk later posted on social media that his “very heavy Tesla obligations” meant delaying the India trip, but said that he expects to visit the country later in the year.  

The tech billionaire was expected to announce an investment of $2 billion to $3 billion, mainly to build a factory in India. The government had announced a policy lowering tariffs on imported cars if companies invest locally. 

He was also expected to meet executives from several space startups in New Delhi. Musk is awaiting Indian government regulatory approvals to begin offering his Starlink satellite broadband services in the world's most populous country.