Impossible: Donald Trump on Tesla plans to sell EVs in India, terms factory plan unfair

In a recent interview, Donald Trump reminded of high tariff on imported cars in India which could play as a deterrent for Tesla. Both Trump and Musk had criticised Indian policy to levy 100 per cent tariff on imported electric cars before. Tesla had to put off its India launch plans in 2022 due to high tariff and condition that a company needs to commit to local manufacturing to expect any relaxation in tariff. The Centre has formed a new EV policy which promises to lower import tax to 15 per cent if a carmaker invests at least $500 million and sets up a factory in India.

Why Donald Trump says it is impossible for Tesla to sell cars in India

Donald Trump also said it is impossible for Tesla to sell cars in India even if it enters the market without setting up local manufacturing unit. In an interview with Fox News, Trump said, “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.” Referring to Elon Musk, he also said, “Now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair.”

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Tesla had earlier said it will first try to sell its EVs in India and will decide on setting up a local manufacturing plant based on its success. Several state governments have already offered Tesla with lands to set up its facility. However, no final decision has been taken so far.

Tesla to launch India operations with an affordable EV: Report

Amid speculations of Tesla’s India launch, a report has claimed the EV maker is likely to introduce an affordable electric car for the market. According to a CNBC-TV18 report, Tesla could introduce EVs manufactured at its Berlin GigaFactory in India initially. The report also claims the price of Tesla’s first electric car could be around ₹21 lakh (($25,000). The EV maker is reportedly planning to start selling EVs in India as early as April this year.

Also Read : Tesla is hiring for India. Check who the EV maker is looking for

Tesla’s $25,000 EV project to revive?

While some other reports suggest that Tesla could start India operations with EVs like the Model 3 and Model Y, questions arise whether the EV maker will revive its affordable electric car project. The Model 3, Tesla’s entry-level EV, is priced around ₹36 lakh in Germany. In India, it will cost much higher after adding import taxes.

In February, Tesla hinted at plans to launch its much anticipated and much-hyped cheaper electric car by June 2025. Its CEO Elon Musk has hinted, the EV manufacturer is planning a major product offensive, and a key part of that will be the upcoming car, which is likely to be christened Tesla Model 2. The affordable EV project was earlier shelved due to the EV maker’s focus on robotaxis.

Tesla is likley to manufacture the affordable electric car at. its German facility and export to countries like India and Brazil. While Tesla has not revealed the finer details about the upcoming EV, it has hinted that the new electric car would utilise aspects of the next-gen platform as well as current platforms and will be produced on the same production lines as the current line-up.

Check out Upcoming EV Cars in India.

First Published Date: 20 Feb 2025, 09:18 AM IST