Make Tesla cars in India, advises Adar Poonawalla to Musk

It was reported that Tesla wanted to enter the Indian market, but roadblocks hampered its entry.

The world’s richest man, Elon Musk, received advice from an unlikely neighborhood on Sunday. Adar Poonawalla, CEO of Serum Institute of India (SII), in a tweet advised him to start manufacturing Tesla cars in India.

“Hey @elonmusk, just in case you don’t buy @Twitter, consider investing some of that capital in INDIA for high quality large scale manufacturing of @Tesla cars. I assure you it will be the best investment you will ever make,” Poonawalla tweeted.

It was reported that Tesla wanted to enter the Indian market, but roadblocks hampered its entry.

In 2015, Prime Minister Narendra Modi visited the Tesla Motors headquarters near San Francisco. In 2017, Musk tweeted that “India is committed to selling only electric cars by 2030. It’s already the biggest market for solar energy”, referring to a report by the World Economic Forum which noted that “all cars sold in India will be electric by 2030”.

In 2020, the CEO of Tesla tweeted that the company would come to India, “next year for sure”.

In July 2021, Musk said Tesla could set up a manufacturing unit in India if it was successful with vehicles imported into the country first. Interacting with followers on Twitter, Musk then noted that India’s import duties were “the highest in the world” and hoped for “at least temporary tariff relief for electric vehicles.”

In January, Musk said Tesla was not in India due to “difficulties with the government.” Responding to a tweet about when Tesla would launch in India, Musk wrote, “Still overcoming many challenges with the government.

Also Read: Cars Coming to India in May 2022: Jeep Meridian to Mercedes-Benz C-Class

Imports of Completely Built Vehicles (CBUs) into India are taxed at 60% for those priced below $40,000 in world markets, and 100% for the most expensive, regardless of fuel type (petrol , diesel or electric). But if a car manufacturer assembles an electric vehicle in India, that vehicle would be taxed at just 5% (GST).

Even as Tesla balks at making electric vehicles in India, other global automakers are pushing ahead with their plans.

This year, for example, Mercedes-Benz India will launch local manufacturing of the EQS luxury electric car at its plant in Chakan, Pune.

Hyundai Motor India, which will have six electric vehicles in India by 2028, will soon start local assembly of the Ioniq 5.

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