Tesla CEO Elon Musk has hinted that Tesla will not set up a manufacturing facility in India until the company is licensed to sell and service imported cars in the country on Friday. Responding to a tweet, Musk said, “Tesla will not put a manufacturing plant in any location where we are not allowed first to sell and service cars.”
Nitin Gadkari, Minister for Road Transport and Highways, emphasized a favorable environment for Indian car manufacturing in early April, saying that Elon Musk is welcome to manufacture e-vehicles in India, but if the company wants to manufacture in China and sell in India, it cannot be a good proposition.
Citing the tremendous growth of India's automotive sector in recent years, Gadkari said, "My suggestion to Elon Musk is that he has a good market in India and the Indian market is very big. It's a mutually beneficial situation for both."
In 2020, Musk announced plans to begin production of Tesla electric vehicles in India. Tesla's subsidiary India Motors And Energy Private Limited was founded in Bangalore, southwestern India. Mr. Musk said India is ready to build a Tesla plant in India if it lowers the cost of importing electric vehicles.
Elon Musk, an American entrepreneur and founder of Tesla, said electric car companies continue to face "many challenges" with the Government of India when it comes to launching car production in India.