Putting an end to prolonged speculations, Tesla CEO Elon Musk said on May 27 that the electric vehicle maker would not set up a manufacturing plant in any location where it is not allowed to first sell and service cars.
Responding to a tweet asking whether a Tesla manufacturing plant is coming up in India in the future, Elon Musk said: “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell and service cars.”
The US-based automobile company had long been urging the Indian government to reduce excise duty on imported vehicles, stating it is among the “highest in the world”. However, the Centre had responded by requesting the Tesla boss to set up a manufacturing unit in India instead.
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
Also read: Why did Tesla drop its EV plans in India
In fact, the government’s demands from the likes of Tesla were simple and straightforward: invest in India’s manufacturing capabilities. Tesla though wished to gauge consumer demand by importing vehicles from its two large manufacturing hubs, namely, China and the United States.
Also, Tesla’s request for lowering import taxes had seen opposition from local players who had argued that such a move would hurt investments in domestic manufacturing.
In India, 100 percent import duty is imposed on electric vehicles that cost more than $40,000 and 60 percent on vehicles that cost $40,000 or less. Owing to the duties, Tesla cars could prove too expensive for Indian buyers.
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