U.S. President Donald Trump has said that if Tesla were to build a factory in India to circumvent that country's tariffs, it would be "unfair" to the U.S., in an interview with Fox News which aired on Tuesday.

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.

Tesla is in the spotlight amid speculation about its manufacturing plans in India. While states race to woo the electric car giant, Elon Musk stays silent.

According to reports, the vehicles that will debut in the new showrooms in Delhi and Mumbai will initially be imported from Germany.

US President Donald Trump and Tesla CEO Elon Musk discussed India's high import duties on US automobiles. Trump called the tariffs unfair and suggeste

Donald Trump is irked by Elon Musk’s plans to build a Tesla factory in India, a disappointment that comes just days after the company began hiring staff in the country. This move signals growing anticipation for Tesla's potential entry into the Indian market.

Tesla is ramping up its India expansion with plans for showrooms in Mumbai and New Delhi, along with a new recruitment drive. But former U.S. President Donald Trump has called Tesla's potential factory in India "unfair" to the United States,