Tesla won't Manufacture in India Unless Allowed to Sell

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Tesla won't Manufacture in India Unless Allowed to Sell
29 May 2022
6 min read

News Synopsis

Tesla, the American electric carmaker that has been seeking lower import charges in order to sell its vehicles in India, has stated that it will not manufacture its goods in the nation unless it is first allowed to sell and repair its vehicles there.

In response to a user's question about Tesla establishing a manufacturing unit in India, Musk stated, "Tesla would not put a manufacturing plant in any location where we are not first allowed to sell and repair cars." Last month, Union Road Transport and Highways Minister Nitin Gadkari stated that if Tesla was willing to build its electric vehicles in India, there would be "no problem," but the business would not be allowed to import automobiles 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 the amount.

TWN In-Focus