Elon Musk says Tesla will not manufacture cars in India: Here’s why

Elon Musk has broken his silence on Tesla’s India plans, stating that the company will not produce cars in India until it is allowed to sell and repair its electric vehicles.

He stated that SpaceX is currently awaiting authorization from the Indian government for Starlink.

Musk tweeted late Friday, “Tesla will not build a factory in any place where we are not authorized to sell and service cars first.”

He responded to a user who inquired about the company’s plans for manufacturing in India.

“We are waiting for government approval,” he replied to another Starlink follower.

Union ministers, particularly Road Transport and Highways Minister Nitin Gadkari, have been pleading with Musk to come to India and build electric vehicles.

Musk has redirected the team he hired in India last year to focus on the Middle East and the greater Asia-Pacific regions.

Tesla’s move appears to be revenge for the Indian government’s refusing to take Musk’s demand for lower import taxes on Tesla vehicles.

Several Indian authorities have made repeated calls to Musk to bring Tesla to India, from Telangana Minister for Industries KT Rama Rao to Maharashtra Minister and state NCP President Jayant Patil, but to no effect.

Gadkari remarked last month at the ‘Raisina Dialogue 2022’ that if Musk wants to build in China and sell Tesla cars in India, “that cannot be a good proposition for India.”

“We’ve asked him to come to India and manufacture here.” We don’t have any issues. Because the manufacturers are available and we offer a wide range of technology, Musk will be able to reduce costs.

“India is a huge market with plenty of chances for export. Musk told the audience that Tesla automobiles might be exported from India.

Gadkari had previously stated in February that Musk must first manufacture in India before releasing Tesla cars on the roads.

Musk had previously stated that the government was stopping the company from releasing its products in India. “Tesla isn’t in India yet due to “government challenges,” he wrote.

Currently, India slaps a 100% import tax on automobiles costing more than $40,000 (Rs 30 lakhs), including insurance and shipping costs, while cars costing less than $40,000 are subject to a 60% import tax.

Musk has stated that he wants to launch automobiles in India, but the country’s electric vehicle import tariffs are “by far the highest in the world.”

Meanwhile, SpaceX’s Starlink satellite internet service is now available in 32 nations, up from 25 earlier this year.

Starlink had been instructed by the Indian government to halt “booking/rendering the satellite internet service” in the nation without a license.

Sanjay Bhargava, Starlink’s India Director, resigned earlier this year due to government pressure.

Some people in the country have also been advised that their pre-orders will be refunded by the Elon Musk-owned company.