Just after Musk announced that Tesla is facing many challenges with the Indian government, some Politicians in India began to stir, and recently, the minister of Maharashtra assured Elon Musk that if Musk chooses to build a factory in the state, he will provide Tesla with the help he needs to build a manufacturing plant.
On Thursday, Musk tweeted that Tesla has encountered many challenges in negotiations with the Indian government, which has hindered Tesla's entry into the Indian market and the process of starting sales of Tesla vehicles, although Tesla has been constantly trying to launch its plan to enter India throughout 2021, but the Indian government does not want to make specific concessions for Tesla.
The current problem is that Tesla needs to understand and study the real needs of the local Indian market before setting up a manufacturing plant in India. However, the prohibitively high import tariffs on Indian cars have made it difficult for Tesla to achieve its market research goals, so Tesla hopes that India can reduce Tesla's import tariffs first, while the Indian government says that it can only get lower tariffs if Tesla establishes assembly or manufacturing facilities in India. Because Tesla is too risky to invest in a market that may not eventually show enough interest in electric cars, the two sides seem to be trying to find some sort of compromise.
In response to a tweet from Musk, India's Maharashtra Minister Jayant Patil assured Tesla's company head: "Maharashtra is one of the most advanced states in India and we will provide you with all the necessary help from Maharashtra to help you gain a foothold in India." We invite you to set up your manufacturing plant in Maharashtra. ”
Patil is not the first Indian politician to react to Musk's push. On Friday, the Indian state of Trengana Minister of Industry and Trade KT Rama Rao (KTR), on behalf of Trengana, invited Tesla's head to negotiate with them about Tesla's opening of a store in India, saying that Telangana state "is a champion of sustainability initiatives and a first-class business destination in India".