Elon Musk's Tweet Makes Indian States Clamour for Tesla Plant

Musk tweeted that Tesla was "still working through a lot of challenges with the government," without giving further details.

By Agence France-Presse | Updated: 17 January 2022 17:17 IST

Elon Musk's Tweet Makes Indian States Clamour for Tesla Plant

Tesla's hopes to sell its vehicles in India have been stalled by efforts to negotiate lower import duties

Highlights

Maharashtra's development minister touted state's progressive credentials
Musk has tweeted numerous times since his "challenges" comment
New Delhi has introduced incentives for foreign carmakers

Indian politicians are clamouring for Elon Musk's attention on Twitter, chasing the coveted right to host a Tesla factory, after the billionaire said government "challenges" were delaying his electric car company's local launch.

Tesla's hopes to sell its vehicles in one of the world's biggest markets have been stalled by efforts to negotiate lower import duties, which can be as high as 100 percent.

After being quizzed about a potential launch date last week, Musk tweeted that his California-based company was "still working through a lot of challenges with the government", without giving further details.

Tesla CEO Elon Musk Says 'Working Through Challenges' With India Government

Still working through a lot of challenges with the government
— Elon Musk (@elonmusk) January 12, 2022

The comments have since prompted ministers from several Indian states to respond on Twitter with public overtures to the world's wealthiest man - himself a prolific user of the social media platform.

"Hey Elon, I am the Industry & Commerce Minister of Telangana state in India," KT Rama Rao tweeted in response to Musk on Friday.

Government Said to Plan Incentives to Bring In Manufacturers Such as Tesla

"Our state is a champion in sustainability initiatives & a top notch business destination."

Hey Elon, I am the Industry & Commerce Minister of Telangana state in India

Will be happy to partner Tesla in working through the challenges to set shop in India/Telangana

Our state is a champion in sustainability initiatives & a top notch business destination in India https://t.co/hVpMZyjEIr
— KTR (@KTRTRS) January 14, 2022

Three other states put their own cases forward over the weekend.

West Bengal's minority affairs minister said his corner of the country boasted the best infrastructure and "vision".

Drop here, we in West Bengal have best infra & our leader @MamataOfficial has got the vision.

Bengal means Business … https://t.co/CXtx4Oq7y5
— Md Ghulam Rabbani (রাব্বানী) (@GhulamRabbani_) January 15, 2022

In Mumbai the development minister touted his state's "progressive" credentials.

And in Punjab, lawmaker and retired international cricketer Navjot Singh Sidhu promised a commitment to green jobs and sustainable development.

I invite @elonmusk, Punjab Model will create Ludhiana as hub for Electric Vehicles & Battery industry with time bound single window clearance for investment that brings new technology to Punjab, create green jobs, walking path of environment preservation & sustainable development https://t.co/kXDMhcdVi6
— Navjot Singh Sidhu (@sherryontopp) January 16, 2022

Musk has tweeted numerous times since his "challenges" comment last week, but has so far not responded to any of his Indian entreaties.

New Delhi has introduced incentives for foreign carmakers to manufacture their vehicles locally but Musk has said he wants to gauge demand with imports first.

India imposes a 100 percent tax on imported electric vehicles worth more than $40,000 (roughly Rs. 30 lakh), and Tesla fears the steep duties will price them out of the cost-sensitive Indian market.

Electric cars accounted for only 1.3 percent of all vehicles sold in the country in 2020-21, according to research by digital consultancy Techarc.

The government's target is for 30 percent of private cars to be electric by 2030 as part of a wider push to decarbonise the transport sector.

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