Tesla in India: Donald Trump irked by Elon Musk’s plans to build factory in India, calls it ’unfair’ to America

US President Donald Trump said in an interview with Fox News that aired on Tuesday that if Tesla were to build a factory in India to circumvent that country's tariffs, it would be "unfair" to the US. "Now, if he built the factory in India, that's okay, but that's unfair to us. It's very unfair," Trump said in the interview.

During Prime Minister Narendra Modi's visit to the US last week, Trump called out India's high duty on cars.

Tesla CEO Elon Musk has repeatedly criticised India's approximately 100% import tariffs on electric vehicles, arguing that the country protects domestic automakers like Tata Motors in the world's third-largest car market, where EV adoption is still in its early stages.

Tesla starts recruitment in India

Despite these tariffs, Reuters reported on Tuesday that Tesla had chosen sites for two showrooms in New Delhi and Mumbai. Elon Musk's company is ramping up its presence in India, with recent job postings on its website revealing a recruitment drive for various roles in the "Mumbai Suburban" area. This move signals growing anticipation for Tesla's potential entry into the Indian market.

Musk’s 2022 Statement: Tesla won’t produce in India without permission to sell and service cars

Musk had stated in 2022 that Tesla would not produce its goods unless it was permitted to sell and repair its automobiles in India, where it had previously sought a decrease in import taxes to sell its vehicles.

Musk stated in August 2021 that if Tesla tastes success in importing cars into India, it might establish a manufacturing facility there. "But import duties are the highest in the world by far of any large country!" he said while wishing that Tesla could introduce its cars in India.

Customs duties on imported cars that are completely built units (CBUs) currently range from 70% to 100%, depending on the engine size and the cost, insurance, and freight (CIF) value.

-With agency inputs