July 03
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Tesla CEO Elon Musk said that the company will not produce cars in India if the country does not allow it to sell and service its electric cars.

When a Twitter user asked on Friday if Tesla would produce a plant in India in the future, Musk said that was impossible under current regulations in the country.

"Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars," Musk tweeted late on Friday.

The team Musk hired in India last year has since been instructed to focus on the Middle East and larger Asia-Pacific markets.

Musk's comments came at a time when the Indian government had not yet accepted his demand for lower import duties on Tesla cars.

Indian leaders have repeatedly made unsuccessful appeals to Musk to bring Tesla to India.

"Our request to him is to come to India and manufacture here. We have no problems. The vendors are available, we offer all kinds of technology and because of that, Musk can reduce the cost.

"India is a huge market and offers good export opportunities too. Musk can export Tesla cars from India," he told the audience.

In February, Gadkari said Musk must first set up production in India before Tesla cars can drive on the country's roads.

In January, Musk said he could not yet produce Tesla cars in India because of problems with the government. And last summer, the billionaire wrote on Twitter that he would like to produce Tesla cars in India, but the import duties in that country are the highest of any major country in the world.

India currently levies a 100 percent -tax on imported cars worth more than $40,000, including insurance and shipping costs. Cars worth less than $40,000 are subject to a 60% import tax, Fox Business writes.

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