Tesla won't manufacture in India unless allowed to sell, service cars: Elon Musk

Electric automaker Tesla, which has been seeking a reduction in import duties to sell its vehicles in India, will not manufacture its products locally unless it is allowed to first sell and service its cars in the country, Founder and Chief Executive Elon Musk said in a tweet.

When Musk announced Starlink getting approved by the Philippines, an Indian user reached out to him about Starlink coming to India. To this, Musk responded, saying the company is waiting for government approval.

Another user joined the conversation asking about Tesla setting up a manufacturing plant in India. 

"Tesla will not put a manufacturing plant in any location where we are not allowed first to sell and service cars," Musk replied. 

Last month, Union Road Transport and Highways Minister Nitin Gadkari said if Tesla was ready to manufacture its electric vehicles in India, there was 'no problem', but the company must not import cars from China.

In August last year, Musk had said Tesla may set up a manufacturing unit in India if it first succeeds with imported vehicles in the country.

He had said Tesla wanted to launch its vehicles in India, "but import duties are the highest in the world by far of any large country!"

At present, India imposes 100 percent import duty on fully imported cars with a CIF (Cost, Insurance and Freight) value of more than $40,000 and 60 percent on those costing less than that amount. However, tariffs on imported parts assembled in India are closer to 15 to 30 percent.

Tesla clocked $18.8 billion in revenue during the first quarter of the year, beating market projections of $17.8 billion, an 81 percent increase from last year.