Elon Musk has confirmed that Tesla will not establish a manufacturing base in India unless it is able to sell and service cars in the country.
The electric car manufacturer has long had an interest in entering the Indian market. However, India levies a 100 per cent tax on imported cars that cost more than $40,000 while vehicles costing less than that are slapped with a 60 per cent tax. Musk had pushed the Indian government to offer it tax breaks so it could import cars from its facilities in the United States and China.
However, India was not willing to offer tax breaks unless Tesla committed to building a factory in the country.
Read More: Tesla Is Putting Its Plan To Sell EVs In India On Hold
While recently responding to a question about Tesla’s Indian future on Twitter, Musk confirmed that “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars.”
The Indian government remains hopeful that Tesla will build a local factory.
Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars
— Elon Musk (@elonmusk) May 27, 2022
“Our request to him is to come to India and manufacture here. We have no problems,” Road Transport and Highways Minister Nitin Gadkari recently said according to TribuneIndia.com, Fox Business reports. “The vendors are available, we offer all kinds of technology and because of that, Musk can reduce the cost. India is a huge market and offers good export opportunities too. Musk can export Tesla cars from India.”
Musk first expressed interest in producing Tesla vehicles in India back in 2020 but after two years of deliberations, no agreement could be reached.
The Indian government was especially opposed to the idea of Tesla importing Chinese-made vehicles into the country.
“He is welcome in India. We don’t have any problem, but, suppose, he wants to manufacture in China and sell in India, it cannot be a good proposition for India,” Gadkari added during an event in April. “Our request to him is, come to India and manufacture here.”
