Mumbai: Maharashtra Transport Minister Pratap Sarnaik had previously gifted a luxury Tesla electric car to his grandson, marking his preference for greener fuel; he chose this automobile company over others.
At that time, this gift had sparked considerable murmurs in political circles. However, on Tuesday, Sarnaik has struck back at Tesla by directing a review of tax concessions given by the Maharashtra government to Tesla.
This shift in policy stems from a social media post made by Tesla founder Elon Musk on October 9, in which he referred to "Prime Minister Ambani." Musk has alleged the Indian business oligarch is disallowing his company from entering India.
Objecting to this statement, Minister Sarnaik clarified, "No commercial interest supersedes national pride and respect for the country's leadership."
Maharashtra, a key market for Tesla
Tesla is a globally renowned electric car company, which has identified India as a potentially huge market. In 2025 alone, a total of 226 Tesla vehicles were sold in India; of these, 140 were sold in Maharashtra. Maharashtra accounted for approximately 62 per cent of Tesla's total sales.
In the current year, till now, 826 Tesla vehicles have been registered in India, of which, 282 have been registered in Maharashtra. This year, Maharashtra accounts for approximately 33 per cent of the total vehicle registrations. While the state is considered a key market for Tesla, Musk's alleged remarks have sparked a strong reaction in the Maharashtra government.
Policy Review
Sarnaik has directed that established policies, legal provisions, the state's interests, and broader national interests have to be taken into account while reviewing the issue of the zero per cent road tax concession applicable to imported electric vehicles.
However, Sarnaik clarified, "No announcement has been made to immediately revoke the concessions for Tesla." He added that the state government remains committed to promoting the use of electric vehicles, the electrification of public transport, and eco-friendly travel. "Priority is being given to expanding the fleet of electric buses, establishing charging facilities, and developing green transport infrastructure within the state," said Sarnaik.
Sarnaik asserted that promoting eco-friendly technology and upholding national identity are not mutually exclusive. He said it is equally important for international companies operating in the Indian market to respect the country's leadership and institutions.
"Profit and market access are significant in all businesses; however, commercial relationships cannot endure in the long run without mutual respect and trust," he said.