Former US President Donald Trump has voiced concerns over Tesla CEO Elon Musk’s possible plans to set up a manufacturing facility in India.
Speaking to Fox News, Trump called such a move “unfair” to the United States, pointing to existing trade imbalances and the challenges American carmakers face in selling vehicles in India.
“If he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” Trump said.
He also highlighted how difficult it is for American automakers to enter the Indian market, stating, “It is impossible to sell a car, practically, in, as an example, India.”
One of the biggest hurdles for foreign carmakers in India is the country’s steep import tariffs. India currently levies an import duty of 100% on completely built units (CBUs) priced above $40,000, while vehicles costing less face a 70% duty. This policy benefits domestic manufacturers like Tata Motors but makes it costly for companies like Tesla to sell imported cars in India.
To ease this barrier, the Indian government rolled out a new EV policy in March. Under this policy, import taxes are slashed to 15 percent for carmakers willing to invest at least $500 million and set up local manufacturing plants.
Despite India’s new policy, Trump remains critical of American companies expanding manufacturing operations abroad. He has long pushed for reciprocal tariffs to address trade imbalances, arguing that US businesses setting up factories in other countries could hurt American jobs and industry.
His stance has often raised concerns about potential trade conflicts, with many questioning whether stricter trade measures would benefit or harm the US economy in the long run.
While Tesla has not officially announced plans to set up a factory in India, reports suggest the company is gearing up for an entry. It has reportedly identified showroom locations in New Delhi and Mumbai and has even started hiring mid-level employees in the country.
However, Musk has previously indicated that Tesla would only consider manufacturing in India if import duties were lowered. With the Indian government now offering tax breaks, speculation is growing over whether Tesla will take the plunge.