A CLSA report has highlighted that with a reduced tariff rate of 15-20 per cent, Tesla price in India will be more expensive than its domestic competitors like Maruti Suzuki. The company will need to open a manufacturing unit in India to keep up with competition.

Donald Trump has issued a withering three-word verdict on Elon Musk's possible plans to build a Tesla factory in India, saying "it's very unfair". Indian Prime Minister Narendra Modi met with the SpaceX founder Mr Musk during a visit to Washington at the invitation of President Trump earlier this month.