Tesla, the American electric carmaker that has been seeking lower import duties in order to sell its vehicles in India, has stated that it will not manufacture its products in the country unless it is first allowed to sell and service its vehicles there.

In response to a user’s question about Tesla establishing a manufacturing plant in India, Musk stated, “Tesla will not put a manufacturing plant in any location where we are not first allowed to sell and service cars.”

Last month, Union Road Transport and Highways Minister Nitin Gadkari stated that if Tesla was ready to manufacture its electric vehicles in India, there would be “no problem,” but the company would not be allowed to import cars from China.

Mr. Musk stated in August of last year that Tesla may establish a manufacturing unit in India if it first succeeds with imported vehicles in the country.

He stated that Tesla wanted to launch vehicles in India, “but import duties are by far the highest in the world of any large country!”

Currently, India imposes a 100 percent import duty on fully imported cars with a CIF (Cost, Insurance, and Freight) value greater than USD 40,000 and a 60 percent duty on those costing less.