U.S. President Donald Trump has expressed concerns over Tesla’s potential plans to build a factory in India, stating that it would be “very unfair” to the U.S. This comes after Tesla started hiring staff in India, signaling its potential entry into the market.
Trump recalled his previous discussion with Indian Prime Minister Narendra Modi, where he criticized India’s high duty on cars. Despite this, both leaders agreed to work towards an early trade deal and resolve their standoff over tariffs.
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During his recent U.S. visit, Prime Minister Narendra Modi met with Tesla CEO Elon Musk, who has been vocal about his criticism of India’s high import tariffs on electric vehicles (EVs). These tariffs, which are around 100%, are designed to protect local automakers like Tata Motors in India’s vast auto market, where EV adoption is still in its early stages.
Donald Trump weighed in on the issue, stating that it’s “impossible” for Elon Musk to sell a car in India due to the country’s high tariffs. “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,” he said.
India’s government introduced a new EV policy in March, lowering import duties to 15% for carmakers that invest $500 million and establish a factory.
President Trump criticized the policy, saying it would be unfair to America if Elon Musk built a factory in India. “Now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” Trump said.
President Trump’s plan to impose reciprocal tariffs on countries that tax U.S. imports has raised concerns about a potential global trade war. Under this system, the U.S. would mirror the tariffs imposed by other nations on American goods, essentially levying identical tariffs on imports from those countries.
President Trump shared his approach to tariff negotiations, stating, “If I said 25 percent, 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.”
Tesla’s entry into the Indian market is highly anticipated, with the company expected to launch as early as April this year. As part of its expansion plans, Tesla has reportedly selected locations for two showrooms in New Delhi and Mumbai, marking a significant milestone in its India foray.
To support its operations, Tesla has posted job ads for 13 mid-level roles in India, indicating its commitment to establishing a strong local presence.
Tesla currently doesn’t manufacture any vehicles in India. Despite long-standing rumors of its entry into India’s EV market, the company has faced significant hurdles, including localized factory investments, regulatory challenges, and high taxes. Tesla has advocated for policy incentives and lower import duties to facilitate its entry into the Indian market.
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