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Elon Musk Won’t Build Tesla Cars in India as Government Bans Sales and Servicing of EVs

by Harold Vazquez
May 29, 2022
in Finance
Elon Musk Won’t Build Tesla Cars in India as Government Bans Sales and Servicing of EVs

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Tesla CEO Elon Musk said the company will not manufacture cars in India if the country does not allow it to sell and service its electric vehicles.

Asked whether Tesla would build a plant in India in the future, Musk said the move could not happen under the country’s current regulations.

“Tesla will not set up a manufacturing facility in any place where we are not previously allowed to sell and service cars,” Musk tweeted.

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The team that Musk hired in India last year has been directed to focus on the Middle East and the larger Asia-Pacific markets.

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Elon Musk tweeted on Friday that Tesla will not manufacture cars in India if the government does not allow the company to sell and service its electric vehicles. (Getty Images/AP)

Musk’s remarks come after the Indian government is yet to accede to his demand for reducing import duties on Tesla cars.

Indian leaders have made several unsuccessful appeals to Musk to bring Tesla to India.

Road Transport and Highways Minister Nitin Gadkari said, “Our request to him is to come to India and manufacture here. We have no problem. Vendors are available, we offer all types of technology and due to this, Musk can reduce cost. ” According to TribuneIndia.com, during the Raisina Dialogue 2022 conference last month.

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Tesla CEO Elon Musk and Armin Laschet, CDU Federal Chairman and Prime Minister of North Rhine-Westphalia, talk during a plant tour of the Tesla Gigafactory’s future foundry in Grünheide, near Berlin, Germany, on August 13, 2021. ((Photo by Patrick Plell – Poole / Getty Images) / Getty Images)

“India is a huge market and also offers good export opportunities. Musk may export Tesla cars from India,” he said.

Gadkari said in February that before Tesla cars could hit the roads, Musk would first have to manufacture them in India.

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A Tesla vehicle moves past Tesla’s Fremont, California factory. (Reuters / Reuters Photo)

Musk tweeted in January that he could not yet release Tesla vehicles in India due to “challenges with the government”. And last summer, the billionaire posted on Twitter that he wanted to launch Tesla in India, but that the country’s import duties “are among the highest of any major country in the world.”

India currently imposes a 100% tax on imported vehicles costing more than $40,000, which includes insurance and shipping expenses. Cars priced under $40,000 face a 60% import tax.

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Musk also said on Twitter on Friday that SpaceX is awaiting the Indian government’s approval to provide the company’s Starlink satellite internet to the South Asian country.

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