Tesla, an electric car maker led by Elon Musk, is stepping up preparations for a postponement of entry into India, a move that is clearly relatively pleasant to U.S. President Donald Trump.
Indian media outlets are making their debut to see the latest news about EV-Maker entering the country, with one of the leading UK publications being government sources reporting Tesla will invest Between $3 billion and $5 billion Build a manufacturing center in India.
Another media reported that Tesla will import vehicles from Berlin for sale in India. Starting at around Rs 21 lakh ($24,260).
Also on AF: Volkswagen's $1.4 billion tax bill, foreign companies' plans to increase India
That was when Reuters reported on Tuesday that Tesla Selected locations for two showrooms In Indian cities in New Delhi and Mumbai, job ads have also been published for 13 middle-level roles in India.
Tesla suddenly entered the Indian market over the course of the meeting with Indian Prime Minister Narendra Modi last week with its CEO Elon Musk. Modi said on X that they discussed issues including space, mobility, technology and innovation.
Meanwhile, Modi is actually in Washington Meet with US President Donald Trump and began dialogue on an early trade agreement to prevent India’s highly “reciprocal” tariffs on India. New Delhi may reduce tariffs on U.S. imports, including electric vehicles, as part of the negotiations.
Negotiations give Tesla the opening needed to eventually enter India – Musk has long criticized the country's import tariffs of about 100% electric vehicles that protect local automakers, such as the nascent electric car market Tata Motor Company.
But Musk's Tesla may now face a different problem: Trump.
“Unfair to us”
In a conversation with Fox News on Tuesday hours after Reuters reported, Trump said it would be “unfair” to the United States if Tesla was to build a factory in India to circumvent New Delhi's tariffs.
Trump said it was “impossible” for Musk to sell cars in South Asian countries.
“Every country in the world has taken advantage of our strengths, they do it with tariffs… In fact, taking India as an example, it's actually impossible to sell a car.”
“Now, if he built a factory in India, that's OK, but it's unfair to us. It's very unfair,” Trump said in an interview.
Trump has called high tariffs in India in the past few times. His most recent criticism was during Modi's visit, when he called his duty “unfair” and “very powerful.”
“I have to say, it's really a big problem,” Trump said.
On the same day, Trump unveiled Roadmap for mutual tariffs.
“We are getting along with India,” Trump said in a press conference. “Whatever India charges, we accuse them.”
India imposes maximum tariffs on exports from any major U.S. trading partner. In March, the Modi government unveiled a new EV policy to reduce import taxes to 15% if automakers invest at least $500 million and build factories.
Indian and U.S. officials say a trade deal between the two countries can be reached this year.
- Reuters, other editors and inputs with Vishakha Saxena
Please read also:
Worry about mutual benefit Trump tariffs eliminate $180 million from Indian stocks
Indian automaker blocks EV import tax cuts to prevent Tesla from entering
Sources said
Ministry of Technology warns India's high taxes will undermine export targets
India's eyes tariffs, import curbs to cope with China's trade gap
Trade wars will be “disastrous” to the world economy: WTO
