US President Donald Trump has criticized Tesla’s potential plan to set up a production facility in India, calling it “unfair to the US.” In an interview, he also took a shot at India’s high tariffs on imported cars, stating it’s “nearly impossible to sell a car in India due to these duties.”
Trump has long been vocal about India’s import taxes, which can go up to 100% on electric vehicles (EVs). The high tariffs are meant to protect local automakers, such as Tata Motors. However, in March, India introduced a new policy, reducing import duties to 15% and requiring companies to invest at least $500 million and set up a manufacturing facility in the country.
Tesla has already begun making moves in India, with reports suggesting it has selected locations for showrooms in Delhi and Mumbai. The company has also posted job listings in India but has not yet started manufacturing cars there.
Trump expressed his dissatisfaction, stating, “If he builds the factory in India, that’s fine, but it’s unfair to us.” The remarks are a reflection of the growing global trade tension, especially with the US’s push for reciprocal tariffs that could trigger a trade war, impacting both allies and rivals of the US.
What Does This Mean for India’s EV Sector?
Tesla is making significant moves in the electric vehicle industry. The company has started recruiting in India, hinting at its plans to enter the country’s EV market. Tesla CEO Elon Musk recently met with Indian Prime Minister Narendra Modi during Modi’s US visit, signaling further interest in expanding operations in India.
Tesla is currently hiring for 13 roles in Mumbai and Delhi, which include customer-facing jobs such as advisory and engagement managers, as well as technical roles like service technicians and delivery operations specialists. For years, Tesla has hesitated to enter the Indian market, but things are changing. The Indian government recently reduced import duties on luxury EVs priced above $40,000, cutting the tax rate from 110% to 70%. This policy shift makes India a more viable market for Tesla.
India’s EV industry is still small compared to China. Last year, China sold 11 million EVs, while India’s total sales were just around 100,000. But with growing incentives and a push for clean energy, Tesla sees strong potential for expansion. While Tesla has not yet confirmed when it will start selling cars in India, analysts believe the company may begin with imports before deciding on local manufacturing. Government support and demand will play a key role in Tesla’s long-term plans.
Meanwhile, Tesla’s hiring spree comes amid broader trade discussions following the meeting between Musk and Modi. US President Donald Trump has stated that the US and India are negotiating trade balance improvements and increasing military sales, including possible deals for the F-35 fighter jets.
Local auto manufacturers in India are preparing for the competition. Mahindra Group Chairman Anand Mahindra addressed this in a social media post, asking how his company would stay relevant. Mahindra confidently recalled that similar doubts were raised when India’s economy opened in 1991. “But decades later, Mahindra is still standing strong,” he asserted, assuring customers that his company is working hard to remain a key player in India’s automotive industry.
The arrival of Tesla in India is a game-changer. Hiring has started, policies are shifting, and competition is heating up. Will Tesla dominate the Indian EV market, or will local manufacturers like Mahindra and Tata rise to the challenge? One thing is certain: India’s EV landscape is about to get a lot more exciting. Stay tuned for more updates.
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