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Elon Musk reveals why he will not manufacture Tesla cars in India

Responding to another follower on Starlink, Elon Musk said, "We are waiting for government approval".

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Breaking his silence on India plans, Elon Musk has said that Tesla will not manufacture cars in India unless it is allowed to sell and provide service to its electric vehicles. On Starlink, he said that SpaceX is still waiting for the Indian government's approval.

"Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars," Musk tweeted late on Friday.

He responded to a user asking about the company's manufacturing plans for India. Responding to another follower on Starlink, he said, "We are waiting for government approval".

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Union Ministers, especially Road Transport and Highways Minister Nitin Gadkari, keep on making a beeline to Musk to come and manufacture electric cars in India.

The team Musk hired in India last year has now been diverted to focus on the Middle East and the larger Asia-Pacific markets.

The move by Tesla appears to be a retaliation as the Indian government has not accepted the demand by Musk to reduce import duties on Tesla vehicles.

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From Telangana Minister for Industries, KT Rama Rao, to Maharashtra Minister and state NCP President Jayant Patil, several Indian leaders have made repeated appeals to Musk to bring Tesla to India but no avail.

During the 'Raisina Dialogue 2022' last month, Gadkari said that if Musk wants to manufacture in China and sell Tesla cars here, "it cannot be a good proposition for India".

Earlier in February, Gadkari had said that Musk has to manufacture in India first to roll out Tesla cars on the roads.

Musk had tweeted that he faced challenges from the government for releasing its products in India. "Tesla isn't in India yet due to "Challenges with the government," he posted.

Currently, India levies 100 percent tax on the imported cars of price more than $40,000 (Rs 30 lakhs), inclusive of insurance and shipping expenses, and cars less than $40,000 are subject to 60 percent import tax.

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