World Conglomerate Elon Musk Says Tesla Will Not Build Factory In India, Unless It Can Import First

JAKARTA - Elon Musk has confirmed that Tesla will not build a factory in India unless it obtains permission to sell and service its cars in the country.

Quoting from Antara, which launched Carscoops, Wednesday, June 1, the electric car manufacturer has long been interested in entering the Indian market. However, the country levies a 100 percent tax on imported cars that cost more than $40,000, while vehicles less than that are subject to a 60 percent tax.

Musk has been pushing the Indian government to offer tax breaks so it can import cars from its factories in the United States and China.

However, India is not willing to offer tax breaks unless Tesla commits to building a factory in the country.

"Tesla will not place factories in any location where we are not pre-authorised to sell and service cars," Musk recently tweeted, responding to a user's question about Tesla's future in India.

India's Minister of Land and Highways Transport Nitin Gadkari recently said it remains hopeful that Tesla can build a factory in the country. He also said his party also had no problems with Tesla.

"Vendors are available, we offer all kinds of technology and because of that, Musk can reduce costs. India is a big market and offers good export opportunities too. Musk can export Tesla cars from India," he said according to the Indian Tribune.

Musk first expressed interest in producing Tesla vehicles in India in 2020 but after two years of talks, no deal could be reached.

The Indian government is particularly opposed to the idea of Tesla importing Chinese-made vehicles into the country.

"He (Musk) is welcome in India. We have no problem, but suppose he wants a Chinese factory to sell cars in India, that cannot be a good proposition for India," Gadkari added at an event in April.