Tesla is actively scouting for land in India to establish a new electric vehicle (EV) manufacturing plant, with Maharashtra emerging as the frontrunner, according to a report by The Economic Times (ET). The company's growing interest in India follows Elon Musk's recent meeting with Prime Minister Narendra Modi in the U.S. Tesla has even started hiring in the country, as seen in job postings on LinkedIn. However, not everyone is pleased¡ªformer U.S. President Donald Trump has criticised the move, calling it "very unfair" amid his push for significantly higher tariffs.
During Donald Trump and Elon Musk's interview with Fox News presenter Sean Hannity, U.S. President Donald Trump criticised India's high import duties on cars, recalling that he raised the issue during Prime Minister Narendra Modi's recent visit to the U.S.?
While both leaders agreed to work toward a trade deal to ease tariff tensions, Trump expressed concerns about the challenges American automakers face in India.
Trump stated that selling cars in India is "impossible" due to these tariffs, adding, "Every country in the world takes advantage of us, and they do it with tariffs... It is impossible to sell a car, practically, in, as an example, India.¡±
Musk, agreeing with Trump, said, "The tariffs are like 100% import duty."
Trump further argued that it would be "unfair" to the U.S. if Musk were to build a Tesla factory in India, stating, "Now, if he built the factory in India, that's okay, but that's unfair to us. It's very unfair."
Tesla is expected to make its entry into the Indian market as early as April this year, according to sources.?
Maharashtra has emerged as the top choice for the company, largely due to its existing presence in Pune, where Tesla already has an office.?
The state is also home to many of the company's suppliers, making it a strategic location for expansion.
The Maharashtra government has reportedly proposed sites near Chakan and Chikhali, both close to Pune.?
Chakan, in particular, is a key automobile hub, housing major manufacturers like Mercedes-Benz, Tata Motors, Mahindra & Mahindra, Volkswagen, and Bajaj Auto.
Elon Musk has hinted at Tesla's India plans multiple times.?
Back in 2021, the company planned to set up a showroom and office in Mumbai's Lower Parel area, but the project stalled due to unresolved import duty negotiations with the Indian government.
In 2024, India introduced a new EV policy offering duty concessions to automakers willing to invest at least $500 million in local production¡ªwidely seen as an effort to attract Tesla.
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