Tesla posted new job vacancies in India the other day. Now, the company has given hints of entering the Indian market. But US President Donald Trump has called the company's move to build a factory in India to bypass import duties 'very unfair'. The US President said this in a joint interview with Tesla CEO Elon Musk for Fox News' Sean Hannity.
President Trump recalled that he had mentioned India's high tariffs on cars during Prime Minister Narendra Modi's visit to the US last week, but the two had agreed to work towards a trade deal and resolve the dispute over tariffs.
Trump said it would be impossible for Elon Musk to sell a car in India. "Every country in the world uses import tariffs to take advantage of us... It's practically impossible to sell a car in a country like India," he said.
President Trump said that if Elon Musk decides to build a factory there, it would be unfair to the United States. “Now, if he built a factory in India, that’s fine, but it’s unfair to us. It’s totally unfair,” Trump said in the interview.
Trump said the US would impose tariffs on imports from other countries at the same level as those countries impose on American products. “If I say 25 percent, they’ll say, ‘Oh, that’s terrible.’ I don’t say that anymore… because I say, ‘Whatever they charge, we’ll charge,’” Trump told Fox News on Tuesday while discussing his tariff plans.
However, the Indian government had in March rolled out a new electric vehicle policy that would reduce import duty to 15 percent if a carmaker invests at least $500 million and sets up a factory.
Tesla's India entry
Elon Musk's Tesla is likely to enter the Indian market as early as April this year, according to reports. The EV maker has also reportedly selected locations for two showrooms in Indian cities New Delhi and Mumbai.
Long-time Tesla CEO Elon Musk has earlier criticized India for imposing a 100 percent import duty to protect local automakers like Tata Motors in the world's third-largest auto market.
The Indian Ministry of External Affairs has not responded to the issue.
