Musk wants to test Indian market for Tesla before building local plants

California: Tesla Inc. will not set up auto manufacturing plants in any location where it is not allowed to first sell and service its vehicles, CEO Elon Musk said in a tweet when asked on his plans for India.

Tesla wants the Indian government to lower taxes so it can sell imported cars to test the market before committing to building a factory in the country. Prime Minister Narendra Modi’s administration has encouraged Tesla to produce locally, and has asked the company to avoid selling cars made at its Shanghai factory in India.

Musk also said his other company, Space Exploration Technologies Corp., is awaiting government approval in India to start its Starlink internet service. Starlink uses satellites to provide internet services, creating an alternative to land-based systems.