Tesla CEO Elon Musk has said his company will not set up a manufacturing plant in India until it is allowed to sell and service imported Tesla cars in the country. When a Twitter user asked Musk about Tesla’s plans to set up a manufacturing plant in India, Musk replied, “Tesla will not set up a manufacturing plant in a place where we are not allowed to sell and sell. maintain cars.”
Tesla will not set up a manufacturing plant in a place where we are not authorized to sell and service cars
— Elon Musk (@elonmusk) May 27, 2022
India and Telsa failed to reach an agreement regarding import rights and the establishment of the manufacturing plant by Tesla in the country.
Union Road Transport and Highways Minister Nitin Gadkari said in April that Tesla was welcome to manufacture electric vehicles in India, but in case the owner decides to build cars in China and sell them here, that can’t be a “good guess”, Business Standard reported.
However, Tesla was looking for exactly the same thing. The company has negotiated with the government to reduce import taxes in India so it can first test the market by selling cheaper imported electric vehicles before committing to a manufacturing plant.
Tesla had even formed a subsidiary in India early last year and registered an office in Bangalore. Then, in a tweet earlier this year, Musk said Tesla was “still working on many challenges with the government.”
Recent reports suggest that Tesla now sees Indonesia as a key market in the South Asian region and plans to make it the region’s manufacturing hub.
Earlier, the Economic Times reported that several Tesla executives in India had been reassigned to focus on Indonesia and other Asian countries. This indicates that Tesla’s negotiations with the government may have stalled.
(Edited by : Sudarsanan Mani)