Elon Musk says Tesla will not build an Indian plant unless it can sell imported cars

Elon Musk has confirmed that Tesla will not set up a manufacturing base in India unless it is able to sell and service cars in the country.

Electric car makers have long been interested in entering the Indian market. However, India imposes 100 per cent tax on imported cars worth more than 40 40,000 while 60 per cent tax is levied on cars priced below that. Musk pressured the Indian government to grant tax breaks so that it could import cars from facilities in the United States and China.

However, India did not agree to the tax exemption until Tesla promised to build a factory in the country.

Read more: Tesla plans to sell EVs in India

Responding to a question on Twitter recently about Tesla’s Indian future, Musk confirmed that “Tesla will not set up a manufacturing plant in a place where we were not previously allowed to sell cars and provide services.”

The Indian government is hopeful that Tesla will build a local factory.

“Our request to him is to come to India and produce here. We have no problem, ”said Road Transport and Highways Minister Nitin Gadkari, according to a recent report by TribuneIndia.com. “Vendors are available, we offer all kinds of technology and because of that, masks can reduce costs. India also has a huge market and good export opportunities. Mask can export Tesla cars from India.

Musk first expressed interest in producing Tesla cars in India in 2020 but no agreement was reached after two years of negotiations.

The Indian government, especially Tesla, opposed the idea of ​​importing Chinese-made cars into the country.

He has been welcomed in India. We have no problem, however, suppose he wants to produce in China and sell in India, it may not be a good offer for India, “Gadkari added during an event in April.” Our request to him, come to India and make here Please. “

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