Musk Vs India: Tesla CEO says ‘no plant where sell not allowed’

28 May, 2022 | Pravina Srivastava

Elon Musk hinted on Friday that the business will not build up a manufacturing factory in India until it is first authorized to sell

Tesla’s chief executive officer (CEO) Elon Musk hinted on Friday that the business will not build up a manufacturing factory in India until it is first authorized to sell and service imported cars in the South Asian country.

Musk reacted to a question on Twitter about Tesla’s ambitions to build a manufacturing factory in India by saying, “Tesla will not build a manufacturing plant in any location where we are not allowed to sell and service cars first.”

Gadkari made the comments while responding to a query about Tesla’s concerns about “excessive duties” in India at a private event in Delhi.

“It’s a simple option; if Elon Musk is willing to build a Tesla in India, it’ll be no problem. We have all of the necessary skills, and the vendors are available. We have access to a wide range of technology, which allows him to cut costs “Gadkari explained.

However, Union Minister urged Tesla to start manufacturing in India, pointing out that the country has a large market and facilities, such as ports, to facilitate exports.

“In India, he is welcome. We have no objections, but if he wants to manufacture in China and sell in India, it cannot be a good deal for India. Come to India and manufacture here, is our request to him “Gadkari explained.

Gadkari went on to say that the e-vehicle sector in India has grown tremendously in recent years “My advice to Elon Musk is that he will find a decent market in India, and the Indian market is enormous. It’s a win-win situation for everyone involved.”

Furthermore, he added that India has all of the same high-quality vendors and auto parts as China. He said “It may be simpler for him to manufacture and sell in India. He’ll make a lot of money from it, and the economics are sound. I’ll invite him to come to India and start a business there.”

Earlier this month, during Question Hour in the Lok Sabha, Minister of State for Heavy Industries Krishan Pal Gurjar expressed similar comments, saying that there cannot be a situation where the market is in India but jobs are produced in China.

Musk stated plans to start producing Tesla electric vehicles in India in 2020. India Motors And Energy Private Limited, a Tesla subsidiary, was founded in Bengaluru, southwest India. Musk stated that if India lowers the cost of importing electric vehicles, he is willing to create a Tesla factory there.

Tesla’s founder, Elon Musk, an American entrepreneur, said the electric vehicle business is still facing “a lot of problems” with the Indian government in terms of setting up automobile production in India.

Earlier in January, a Twitter user asked Musk whether there was any new information about Tesla’s manufacturing launch in India, stating that the vehicles “deserve to be in every corner of the earth.”

Musk responded on Twitter, “Still working through a lot of difficulties with the government.”