Tesla May Set Up Manufacturing Plant in India but There Is a Condition, Says Elon Musk
Tesla will not open a manufacturing plant in India, the auto giant’s CEO Elon Musk said on Friday while responding to a tweet. The billionaire said the prospect won’t materialize until Tesla is first allowed to sell and service imported cars in the country.
The statement has come more than a year after reports speculated that the American electric car major was planning to open a plant in the country’s southern region.
A Twitter user asked Musk for an update on the Tesla manufacturing plant in India. Responding to the tweet, Musk said: “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars.”
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
Another Twitter user asked Musk whether there was any update on Starlink’s approval in India. In response to that, the billionaire said that the company is waiting for approval from the government.
Tesla and the Indian government have been in talks for almost two years to see whether there is a way for the electric carmaker to enter the country, but the dialogue hit a stalemate.
Last month, Union minister for Road Transport and Highways Nitin Gadkari said that if Tesla manufactures its automobiles in India, the company will gain as well.
He had also said in April that if Tesla is ready to manufacture its electric vehicles in India, there will be “no problem”, but the company must not import cars from China.
“If Elon Musk is ready to manufacture in India then there is no problem … Come to India, start manufacturing, India is a large market, they can export from India,” the minister said.
It should be noted that the government has demanded that Tesla commits to building a factory in India so that it may assemble automobiles locally, and that it pay high import tariffs until it does so if it wants to sell its cars.
But the auto giant has been looking for lower import duties in India so that it may test the market by selling cheaper imported electric vehicles before committing to a manufacturing base.
Currently, cars imported as Completely Built Units (CBUs) are subject to customs duties ranging from 60% to 100%, depending on engine size and Cost, Insurance and Freight (CIF) value less or greater than $40,000.
In January this year, Karnataka Industries Minister Murugesh Nirani asked Musk to set up car manufacturing plants in the state. The minister took to Twitter to invite the auto giant to start operations in the state.
In a tweet, he said: “With over 400 R&D centres, 45+ EV start-ups & an EV cluster near Bengaluru, Karnataka has emerged as the EV hub of India.”
“Mr @elonmusk, Karnataka would be an ideal destination to set up @Tesla plant. Bengaluru is already Tesla’s maiden address in India”, he added.
Additionally, Tesla was invited to build a facility in Telangana, West Bengal, Maharashtra, Punjab and Tamil Nadu by the respective state governments. But now it is clear that the company has no immediate plans.
Several global brands such as Mercedes-Benz, BMW, Toyota and Hyundai have recently expanded their operations in India.
Read all the Latest News , Breaking News and IPL 2022 Live Updates here.
Tesla will not open a manufacturing plant in India, the auto giant’s CEO Elon Musk said on Friday while responding to a tweet. The billionaire said the prospect won’t materialize until Tesla is first allowed to sell and service imported cars in the country.
The statement has come more than a year after reports speculated that the American electric car major was planning to open a plant in the country’s southern region.
A Twitter user asked Musk for an update on the Tesla manufacturing plant in India. Responding to the tweet, Musk said: “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars.”
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
Another Twitter user asked Musk whether there was any update on Starlink’s approval in India. In response to that, the billionaire said that the company is waiting for approval from the government.
Tesla and the Indian government have been in talks for almost two years to see whether there is a way for the electric carmaker to enter the country, but the dialogue hit a stalemate.
Last month, Union minister for Road Transport and Highways Nitin Gadkari said that if Tesla manufactures its automobiles in India, the company will gain as well.
He had also said in April that if Tesla is ready to manufacture its electric vehicles in India, there will be “no problem”, but the company must not import cars from China.
“If Elon Musk is ready to manufacture in India then there is no problem … Come to India, start manufacturing, India is a large market, they can export from India,” the minister said.
It should be noted that the government has demanded that Tesla commits to building a factory in India so that it may assemble automobiles locally, and that it pay high import tariffs until it does so if it wants to sell its cars.
But the auto giant has been looking for lower import duties in India so that it may test the market by selling cheaper imported electric vehicles before committing to a manufacturing base.
Currently, cars imported as Completely Built Units (CBUs) are subject to customs duties ranging from 60% to 100%, depending on engine size and Cost, Insurance and Freight (CIF) value less or greater than $40,000.
In January this year, Karnataka Industries Minister Murugesh Nirani asked Musk to set up car manufacturing plants in the state. The minister took to Twitter to invite the auto giant to start operations in the state.
In a tweet, he said: “With over 400 R&D centres, 45+ EV start-ups & an EV cluster near Bengaluru, Karnataka has emerged as the EV hub of India.”
“Mr @elonmusk, Karnataka would be an ideal destination to set up @Tesla plant. Bengaluru is already Tesla’s maiden address in India”, he added.
Additionally, Tesla was invited to build a facility in Telangana, West Bengal, Maharashtra, Punjab and Tamil Nadu by the respective state governments. But now it is clear that the company has no immediate plans.
Several global brands such as Mercedes-Benz, BMW, Toyota and Hyundai have recently expanded their operations in India.
Read all the Latest News , Breaking News and IPL 2022 Live Updates here.
Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.