Announced that Tesla cars will now be made in India
In March, the Indian government unveiled its new EV policy, under which import taxes will be reduced to 15 per cent if a carmaker invests at least $500 million and sets up a factory. Announced that Tesla cars will now be made in India
Days after Tesla started hiring workers in India,?
hinting at its possible entry into the market, US President Donald Trump has said that any possible plan by the EV maker to build a factory in India, to circumvent that country’s tariffs, would be ‘very unfair’. The US President made the remarks during a joint interview with Tesla CEO Elon Musk for Fox News’ Sean Hannity.
President Trump recalled that he had criticised the high duties imposed by India on cars during Prime Minister Narendra Modi’s visit to the United States last week but they had agreed to work towards a trade deal at the earliest and resolve their impasse over tariffs.
During his US visit, PM Modi also met Tesla CEO Elon Musk?
who has long criticised India for imposing a nearly 100 per cent import duty on EVs, which protects local automakers such as Tata Motors in the world’s third-largest auto market where EV adoption is still at a nascent stage.
Mr Trump said it was “impossible” for
Elon Musk to sell cars in India. “Every country in the world takes advantage of us, and they do it with tariffs… It’s practically impossible to sell cars in India, for example,” he said.
However, in March the Indian government unveiled its new EV policy, under which import taxes are substantially reduced to 15 per cent if a carmaker invests at least $500 million and sets up a factory.
President Trump said it would be “unfair” to the US if Elon Musk decided to build a factory there. “Now, if he built a factory in India, that’s fine, but it’s unfair to us. It’s very unfair,” Trump said in the interview.
India’s foreign ministry did not immediately respond to a request for comment.
Trump’s reciprocal tariff threat?
Donald Trump’s plan to impose reciprocal tariffs on every country that taxes US imports has raised the risk of a global trade war with US friends and foes. Under his proposed reciprocal tariff system, the US would impose the same level of tariffs on imports from other countries as those countries impose on US goods.
“If I said 25 per cent, they’d say, ‘Oh, that’s terrible.’ I don’t say that anymore… because I say, ‘Whatever they charge, we’ll charge.’ And you know what? They stop,” Mr Trump told Fox News on Tuesday while talking about his tariff plans.
Tesla entering India?
According to sources, Elon Musk’s Tesla could enter the Indian market as early as April this year. The EV maker has reportedly selected locations for two showrooms in the Indian cities of New Delhi and Mumbai and posted job ads for 13 mid-level roles in India.
However, Tesla currently does not manufacture any vehicles in India?
Tesla has long been rumoured to enter India’s electric vehicle (EV) market, but has faced several hurdles related to localised factory investment, regulation and high taxes. It has previously lobbied for policy incentives as well as lower import duties, Announced that Tesla cars will now be made in India
