Elon Musk unveils condition to set up Tesla manufacturing plant in India

Electric car manufacturer Tesla Inc will not manufacture its vehicles in India until the government allows the company to sell and service its cars in the country, said founder and CEO Elon Musk. The Chief Executive of Tesla was inquired by a Twitter user about the company’s India debut after the tech mogul shared the update of his company SpaceX’s Starlink satellites being approved by The Philippines. Musk not only informed that he is “waiting for government approval” for Starlink to be in India but also revealed his condition of manufacturing Tesla in the country.   

When questioned about Tesla in India, Elon Musk responded on Friday, “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars.”

Elon Musk’s remarks on Tesla being debuted in India indicate that there continues to be a standstill between India and the electric car maker pertaining to the manufacturing plant in the country. It is to note that earlier in April, Union Minister for Road Transport and Highways Nitin Gadkari highlighted the conducive environment for automobile manufacturing in India and said that Musk was welcome to manufacture e-vehicles in India. But, Gadkari said that if Tesla's CEO desires to build the car in China and sell it in India, it won’t be a “good proposition”. 

Union MInister Gadkari made the remarks regarding Tesla while speaking at a private event in New Delhi where he also addressed the concerns on “high duties” in India. Gadkari had said, “It is a very easy alternative; if Elon Musk is ready to manufacture a Tesla in India, there is no problem. We have got all the competencies, the vendors are available. We have got all types of technology and because of that, he can reduce the cost.”

Gadkari said Elon Musk is 'welcome in India'

Gadkari also invited Tesla to manufacture its cars in India and averred that the country's market is huge while infrastructure like ports is available to allow exports. The Union Minister said, “He is welcome in India. We don't have any problem, but, suppose, he wants to manufacture in China and sell in India, it cannot be a good proposition for India. Our request to him is, come to India and manufacture here”. 

Further, citing the significant growth in the e-vehicles sector in India over the last few years, Gadkari said, “my suggestion to Elon Musk is, in India, he will get a good market and the Indian market is very huge. It is a win-win situation for both”. Gadkari had also underscored that India has all the quality vendors and spare automobile parts that are available in China and added, “it can be easier for him [Elon Musk] to make here in India and sell in India. He will get good profits from that, and good economics is there. I will request him to come to India and start manufacturing here”. 

Image: AP/Unsplash