Business News/ Auto News / Elon Musk’s Tesla plans for India: Ola founder Bhavish Aggarwal reacts

Elon Musk’s Tesla plans for India: Ola founder Bhavish Aggarwal reacts

3 min read 28 May 2022, 04:47 PM IST Join us

Union Minister for Road Transport and Highways Nitin Gadkari earlier said that Elon Musk was welcome to manufacture Tesla e-vehicles in India.

In case Elon Musk wants to build in China and sell in India, Union Minister for Road Transport and Highways Nitin Gadkari said it would not be a 'good proposition'. REUTERS/Beck Diefenbach/File Photo

Tesla CEO Elon Musk hinted on Twitter that the company would not build up a manufacturing factory in India until it was first authorised to sell and service imported cars in the South Asian country.

Elon Musk was responding on Twitter as he was asked about Tesla's plans to put up a manufacturing plant in India. The world’s richest man said, "Tesla will not put a manufacturing plant in any location where we are not allowed first to sell and service cars."

Ola founder Bhavish Aggarwal reacted to the said comment. “Thanks, but no thanks!" he wrote with a smiley and the Indian national flag - hinting that it might work the other way: Tesla might not get to “ sell and service cars" in India before the company decided to start manufacturing plants in the country.

These comments suggest that the standstill between India and Telsa in regards to setting up the manufacturing plant in the country continues.

Earlier in April, highlighting the conducive environment for automobile manufacturing in India, Union Minister for Road Transport and Highways Nitin Gadkari said that Elon Musk was welcome to manufacture e-vehicles in India. However, in case Elon Musk wants to build in China and sell here, Gadkari said it would not be a "good proposition".

Gadkari made the remarks while speaking at a private event in Delhi answering a question on Tesla's concerns on "high duties" in India.

"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 competencies, the vendors are available. We have got all types of technology and because of that, he can reduce the cost," Gadkari said.

Inviting Tesla to start manufacturing in India, the Union Minister highlighted that India is a huge market, and infrastructure like ports are available to enable exports.

"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," Gadkari said.

Citing the tremendous growth in the e-vehicles sector in India over the last few years, Gadkari further said that "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."

He added that India has all the quality vendors and automobile spare parts that are available in China and that "it can be easier for him 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."

Echoing similar sentiments, the Minister of State for Heavy Industries Krishan Pal Gurjar earlier in February told the Lok Sabha during Question Hour that there cannot be a situation where the market is in India but jobs are created in China.

Musk stated plans to start producing Tesla electric vehicles in India in 2020. India Motors And Energy Private Limited, a Tesla subsidiary, was founded in Bengaluru, southwest India. Musk stated that if India lowers the cost of importing electric vehicles, he is willing to create a Tesla factory there.

Elon Musk, an American entrepreneur and the founder of Tesla, said that the electric vehicle company continues to face "a lot of challenges" with the Indian government regarding the setting up of car production in India.

Earlier in January, a Twitter user posted a tweet asking Musk whether there was any further update on Tesla's manufacturing launch in India and saying the vehicles "deserve to be in every corner of the world."

"Still working through a lot of challenges with the government, " Musk answered on Twitter.

(With ANI inputs)

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ABOUT THE AUTHOR

Sounak Mukhopadhyay

Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and social media. Before working with digital news publications, he worked as a freelance content writer.