CEO Elon Musk tweeted on Friday that unless Tesla is authorised to sell and service imported vehicles in India, there would be no building up of production operations in the nation. If you ask Musk about Tesla’s plans to build a factory in India, he will say, “Tesla will not construct a manufacturing plant somewhere where we are not authorised to sell and service cars first” on Twitter.
There appears to be a stalemate between the country’s administration and Tesla about the establishment of a manufacturing unit in the country.
Indian Union Minister for Road Transport and Highways Nitin Gadkari stated earlier this month that Elon Musk is welcome to manufacture e-vehicles in India, but if the Tesla owner intends to construct in China and then sell in India, it is not a “good offer.”
Gadkari made the comments while answering a question on Tesla’s concerns about “excessive tariffs” in India at a private event in Delhi.
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“If Elon Musk is willing to build a Tesla in India, there’s no difficulty at all. We’ve got all the skills, and the suppliers are ready to start. We have access to a wide variety of technologies, which allows him to cut the cost “Gadkari made the comment.
During his invitation to Tesla, the Union Minister emphasised that India is a vast market, and that infrastructure like ports are accessible for exports.
“In India, he is very welcome. However, if he wants to produce in China and sell in India, it’s not a good idea for India. We don’t have any problem with it. We implore him to come to India and start a business there “Gadkari made the comment.
Citing India’s explosive expansion in the electric car business in the recent several decades “My advice to Elon Musk is to set up shop in India, where he will have access to a sizable market. A win-win situation exists for both parties involved.”
He went on to say that India has access to the same high-quality suppliers and auto parts suppliers as China does “It may be more convenient for him to manufacture and sell in India. Those are strong economics, and he’ll make a lot of money. In the future, I’d want to invite him to come to India and set up shop.”
In February, the Minister of State for Heavy Industries Krishan Pal Gurjar addressed the Lok Sabha during Question Hour that there can’t be a situation where the market is in India, but employment are produced in China. Similarly,
Musk said in 2020 that Tesla electric automobiles would be manufactured in India. India Motors and Energy Private Limited, a Tesla subsidiary, was created in Bengaluru, India’s southwest. In exchange for India’s lower import costs for electric automobiles, Musk has indicated his willingness to create a Tesla plant there.
When it comes to building up Tesla’s automobile manufacturing facility in India, “a lot of difficulties” remain, according to Elon Musk, Tesla’s creator and CEO.