Responding to a Twitter user, Tesla CEO Elon Musk said that Tesla will not set up a manufacturing unit at any location unless it is allowed to sell and service cars first.
see photosIt’s likely to take some time to see Tesla officially enter India
For the past few years, the news of Tesla setting up shop in India has been gaining momentum. But Tesla CEO Elon Musk said the US-based EV company would not set up a manufacturing facility in any location until it was first allowed to sell and service the cars. In response to a question posed by a Twitter user, Elon Musk tweeted, “Tesla will not set up manufacturing plants in any location where we are not previously allowed to sell and service cars.” Tesla differs from the high import duty of 100 percent that is levied on EVs that cost more than $40,000. The import duty on electric vehicles costing less than $40,000 is 60 percent.
Tesla will not set up a manufacturing plant in any place where we are not previously allowed to sell and service cars
— Elon Musk (@elonmusk) 27 May 2022
Read also: Tesla Building a second factory in Shanghai
In February 2022 Tesla halted its plans in India after several rounds of talks with the Indian government regarding lowering tariffs on imports to test demand for Tesla cars in India by importing EVs from the US or China. I had failed to bear fruit. China is the more economical option. But Union Minister Nitin Gadkari clearly said that manufacturing cars in China and selling them in India would not be a good proposition.
Tesla had set a deadline of February 2022 to enter India as the date for the announcement of the new budget, to see if its lobbying had any results.
The Indian government says Tesla may set up a manufacturing facility in India to assemble the cars locally and then sell it in the Indian markets with lower import duties. Tesla incorporated a subsidiary in India last year.
Read also: Tesla puts India entry plan on hold
If Tesla is able to succeed with imported vehicles, a factory in India has great potential.
— Elon Musk (@elonmusk) 23 July 2021
Now, automotive manufacturers can sell a limited number of imported ones (completely built units or CBUs) in India without the need for homologation and this is a phenomenon that usually happens with manufacturers who are already present in India. Like Mercedes-Benz, Audi, BMW and other luxury car companies. The catch is that since they already have a base in India, they are willing to pay higher import duties, which Tesla does not at the moment. In July 2021, he said a factory is likely if Tesla has success with imported vehicles in India, but that import duties are among the highest in the world.
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For now, suffice it to say that talks between Tesla and the Indian government are at a standstill and it could be a crucial one before we actually see Tesla officially entering India.
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