No Tesla Plant In India Unless Allowed To Sell: Musk

Story Highlights
  • Electric car maker Tesla Inc will not manufacture in India.
  • The response to a user query about the company’s manufacturing plans.
  • Tesla’s entry into the country has been on hold since 2019.

New Delhi: Elon Musk on Friday put an end to the speculation on whether Tesla would set up a manufacturing plant in India. Musk said Tesla would not set up a manufacturing plant in any location where the company is not allowed to first sell and service cars.

The US-based electric car company has long urged India to reduce excise duty, which it once described as among the “highest in the world”, on imported vehicles; the Indian government asked Musk to set up a manufacturing plant locally instead.

“Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars,” said the Tesla CEO, in response to a question by a Twitter user who asked about the car company’s plans on India.

It was earlier reported that Tesla has put on hold its plans to sell electric cars in India after talks with the government failed to secure lower import duties on its cars. The company which sells high-end premium electric vehicles first wanted to test demand in the price-sensitive Indian market by selling imported cars manufactured in American and Chinese factories.

Tesla had reportedly set February 1st, when India unveils the annual budget, as the deadline to see if its lobbying efforts got the government to lower import duty on cars. Tesla also abandoned its search for locations in New Delhi, Mumbai and Bengaluru to set up showroooms and reassigned local staff.

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