American company Tesla Inc.'s product architect Allan Musk has decided to open the company's new factory in China.

According to the news of The Wall Street Journal, Tesla has signed a deal with China to open a factory outside of the United States for the first time. Tesla's decision is believed to be a major blow to Prime Minister Narendra Modi's 'Make in India' campaign.

According to the report, the owner of this factory in China will be Tesla, not the local manufacturer preparing it. China has recently given some legal concessions for the convenience of electric vehicle manufacturing. It is believed that China would rarely discount the 25 percent import duty to Tesla.

According to the Money Control report, Indian Transport Minister Nitin Gadkari had offered Tesla to open a factory in India with an Indian automobile manufacturer.

India's Prime Minister Narendra Modi visited the factory located in Tesla's Fremont in 2015. In June this year, Tesla's chief Alan Musk informed on Twitter that his company is negotiating with the Indian government on this issue.

According to the report, the car company wanted to ease the imposition of imports and other restrictions imposed up to the construction of the local factory.

Prime Minister Narendra Modi launched the 'Make in India' scheme on September 25, 2014. Under this, various multinational companies are encouraged to build in India. Through this, the Indian government is promoting foreign direct investment (FDI) in the country. The government expects that 'Make in India' will increase the investment in the country as well as in employment.

(Click here for Android APP of IBTN. You can follow us on facebook and Twitter)

Share This News

About sharing