In a sign that Tesla will not set up a manufacturing plant in India, the automaker’s CEO Elon Musk said Friday that until the company is first allowed to sell and service imported cars in the country, there will be no creation of rules. .
In response to an individual on Twitter, who asked Musk about Tesla’s plans to set up a plant in India, the billionaire replied, “Tesla will not put a plant anywhere where we are not first allowed to sell and service cars.”
These comments indicate a continuing stalemate between the government and Tesla regarding the establishment of the manufacturing plant in the country.
Earlier in April, Minister of Road Transport and Highways Nitin Gadkari, highlighting the favorable environment for car manufacturing in India, said Elon Musk was welcome to manufacture e-vehicles in India, but in case the Tesla owner wants to build and sell in China here , it can’t be a ‘good proposition’.
Gadkari made the comments while speaking at a private event in Delhi when asked about Tesla’s concerns about “high missions” in India.
“It’s a very easy alternative; if Elon Musk is willing to manufacture Tesla in India, no problem. We have all the efficiencies, the vendors are available. We have all kinds of technology, and because of that, he can cut the cost.”
Inviting Tesla to start manufacturing in India, the union minister emphasized that India is a huge market, and infrastructure such as ports are available to enable exports.
“He is welcome in India. We have no problem, but, suppose, he wants to manufacture in China and sell in India, it cannot be a good offer for India. Our request to him is to come to India and manufacture here,” Gadkari said.
Citing the explosive growth of the e-car sector in India over the past few years, Gadkari further said, “My suggestion to Elon Musk is that in India he will have a good market and the Indian market is very huge. It is a win-win situation.”
He added that India has all the quality sellers and auto parts available in China and that “it could be easier for him to make them here in India and sell them in India. He will get good profits from that, and the good economy is there. I will ask him to come to India and start manufacturing here.
Echoing similar sentiments, State Minister for Heavy Industries Krishan Pal Gurjar earlier in February told the Lok Sabha newspaper during the question hour that there could be no situation where the market is in India but jobs are being created in China.
In 2020, Musk announced plans to open production of Tesla electric cars in India. A subsidiary of Tesla, India Motors and Energy Private Limited is incorporated in Bengaluru in southwest India. Musk has said he is ready to build a Tesla plant in India if the country lowers the cost of importing electric cars.
Elon Musk, the American businessman and founder of Tesla, said the electric car company still faces “a lot of challenges” with the government regarding setting up car production in India.
Earlier in January, a Twitter user posted a tweet asking Musk if there was any further update to launch Tesla’s manufacturing in India and said the vehicles “deserve to be in every corner of the world”.
“You’re still working through a lot of challenges with the government,” Musk replied on Twitter.