Elon Musk Proposes, Trump Disposes! Tesla CEO's Plans to Set Up Manufacturing Units in India Hits Road Block? Check Details

Former U.S. President Donald Trump has expressed disapproval of Tesla's plans to establish a factory in India, calling it “unfair” to the United States. In an interview with Fox News aired on Tuesday, Trump criticized India’s high import tariffs and suggested that setting up a Tesla factory in India to bypass these duties would not be beneficial for America.

Tesla's India Expansion Plans

Tesla has been exploring opportunities in India, and according to Reuters, the company has already selected locations for showrooms in New Delhi and Mumbai. Additionally, job listings for 13 mid-level roles have been posted, signaling Tesla’s intent to expand its presence in the country. However, the company has not yet begun manufacturing in India.

India’s New EV Policy

In March 2024, the Indian government introduced a new EV policy, reducing import duties to 15% for automakers willing to invest at least $500 million and build a local factory. This move was seen as a major incentive for Tesla to enter the Indian market.

Trump's Opposition to Tesla's India Move

Trump, who has previously advocated for reciprocal tariffs on countries that impose high duties on U.S. imports, reiterated his stance against Tesla’s potential 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 stated in the interview.

Geopolitical and Trade Implications

Trump’s stance could complicate trade relations between the U.S. and India, especially at a time when both nations are seeking to resolve tariff disputes. During Indian Prime Minister Narendra Modi’s recent visit to the U.S., the two leaders had agreed to work towards an early trade deal.

India’s foreign ministry has yet to comment on Trump’s remarks. Meanwhile, Trump’s push for reciprocal tariffs has raised concerns about a potential global trade war, affecting both allies and rivals of the U.S.

What’s Next for Tesla in India?

Despite Trump's criticism, Tesla's expansion into India appears to be moving forward. However, with geopolitical tensions and U.S. policy uncertainties, it remains to be seen whether Elon Musk will proceed with manufacturing in India or alter his strategy in response to Trump’s concerns.