Elon Musk denies plant in India unless Tesla permitted to sell, service imported cars

Elon Musk denies plant in India unless Tesla permitted to sell, service imported cars

Web Desk
May 29, 2022

Elon Musk denies plant in India unless Tesla permitted to sell, service imported cars

Elon Musk, CEO of Tesla, said on Friday that the business will not set up a manufacturing factory in India until the company is first authorized to sell and repair imported automobiles in the nation.

Responding to a Twitter user who questioned Musk on Tesla’s plans to open a manufacturing unit in India, the billionaire stated, “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell and service cars.”

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

These remarks imply that the standoff between the government and Tesla over the establishment of a manufacturing factory in the nation continues.

Earlier this month, Union Minister for Road Transport and Highways Nitin Gadkari stated that Elon Musk is welcome to manufacture e-vehicles in India, but that building in China and selling in India cannot be a “good offer.”

Gadkari made the statements while responding to a query about Tesla’s concerns about “excessive tariffs” in India at a private event in Delhi.

“It is a very easy alternative; if Elon Musk is ready to manufacture a Tesla in India, there is no problem. We have got all competencies, the vendors are available. We have got all types of technology and because of that, he can reduce the cost,” Gadkari said.

Inviting Tesla to start manufacturing in India, the Union Minister highlighted that India is a huge market, and infrastructure like ports are available to enable exports.

“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. Our request to him is, come to India and manufacture here,” Gadkari said.

Citing the tremendous growth in the e-vehicles sector in India over the last few years, Gadkari further said that “my suggestion to Elon Musk is, in India, he will get a good market and Indian market is very huge. It is a win-win situation for both.”

He added that India has all the quality vendors and automobile spare parts that are available in China and that “it can be easier for him to make here in India and sell in India. He will get good profits from that, and good economics is there. I will request him to come to India and start manufacturing here.”

Musk stated intentions to start producing Tesla electric automobiles in India in 2020. India Motors and Energy Private Limited, a Tesla subsidiary, was created in Bengaluru, southwest India. Musk has stated that he is willing to create a Tesla factory in India provided the nation lowers the cost of importing electric automobiles.

Elon Musk, the inventor of Tesla and an American entrepreneur, stated that the electric vehicle business continues to encounter “a lot of obstacles” with the government regarding the establishment of automobile production in India.

Earlier in January, a Twitter user posted a tweet asking Musk whether there was any further update on Tesla’s manufacturing launch in India and saying the vehicles “deserve to be in every corner of the world.”

“Still working through a lot of challenges with the government” Musk answered on Twitter.