Elon Musk: Tesla Won’t Manufacture in India Unless Allowed to Sell, Service Cars


Elon Must at at the new Tesla Factory in Germany. Image used for representation. (Image: Reuters)

Elon Must at at the new Tesla Factory in Germany. Image used for representation. (Image: Reuters)

Elon Musk has made it clear that Tesla will not be manufacturing electric cars in India until they can sell and service their vehicles here first.

  • PTI
  • Last Updated:May 28, 2022, 11:50 IST
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American electric carmaker Tesla, which has been seeking a reduction in import duties to sell its vehicles in India, will not manufacture its products locally unless it is allowed to first sell and service its cars in the country, company founder and chief executive Elon Musk has said. In a tweet responding to a user asking about Tesla setting up a manufacturing plant in India, he said, “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars.” Last month, Union Road Transport and Highways Minister Nitin Gadkari had said if Tesla was ready to manufacture its electric vehicles in India then there was ‘no problem’ but the company must not import cars from China.

In August last year, Musk had said Tesla may set up a manufacturing unit in India if it first succeeds with imported vehicles in the country. He had said Tesla wanted to launch its vehicles in India “but import duties are the highest in the world by far of any large country!” Currently, India imposes 100 percent import duty on fully imported cars with CIF (Cost, Insurance, and Freight) value more than USD 40,000 and 60 percent on those costing less than that amount.

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