Tesla's India plans are revealed in a tweet by Elon Musk

Tesla CEO Elon Musk announced on May 27 that the electric vehicle maker would not build a factory in any region where it is not allowed to first sell and repair automobiles, putting an end to months of speculation.

"Tesla will not construct a manufacturing plant in any location where we are not authorised first to sell and repair cars," Elon Musk tweeted in response to a tweet inquiring if a Tesla manufacturing plant would be built in India in the future.

The American automaker has long urged the Indian government to lower excise duties on imported vehicles, claiming that they are among the "highest in the world." The Centre, on the other hand, has responded by suggesting that the Tesla CEO establish a manufacturing facility in India.

In truth, the government's demands to Tesla and other companies were simple: invest in India's manufacturing capacity. Tesla, on the other hand, wanted to measure consumer demand by importing cars from its two major manufacturing hubs, China and the United States.

Local players had also objected to Tesla's request for lower import taxes, claiming that such a move would hinder investments in domestic manufacturing.

In India, electric vehicles costing more than $40,000 are subject to a 100% import charge, while vehicles costing less than $40,000 are subject to a 60% duty. Tesla automobiles may be too pricey for Indian buyers due to the levies.