- Tesla has reportedly put its India entry plan on hold.
- The company reportedly did this because it failed to secure a deal for lower tariffs.
- The company has reportedly reassigned its domestic team and abandoned the search for a showroom.
In disappointing news for Tesla fans in the country, the
Elon Musk founded electric car maker has put its India entry plans on hold. The company has been unable to obtain a deal for lower tariffs.
According to a Reuters
report, Tesla has put its plans to sell its electric cars in India on hold. The company has reportedly stopped searching for showrooms in the country and reassigned its domestic staff.
Earlier this year, Elon Musk in response to a question on Twitter regarding its Indian entry had revealed that the company is “facing a lot of challenges with the government.”
Tesla has expressed its interest to enter the Indian market. The company has even received approval for
four models in August 2021 and
three models in December 2021 in India.
The Elon Musk-led company has been negotiating with the Indian government for some time now. The company had
urged the government to slash import taxes on electric vehicles, which would enable it to import its cars in the country.
The Indian government levies a 60% import tax on electric vehicles priced $40,000 or less, and a 100% tax on vehicles priced above $40,000. Considering that
Tesla cars start at $44,690 (approx. ₹36.61 lakh) in the US, Tesla’s cars would have faced a 100% import tax, doubling the cost for Indian buyers.
According to the report, Tesla had hoped for concessions from the government in the Union Budget. After the government did not announce any concessions, the company had reportedly put on hold its plans to sell cars in the country.
According to recent
reports, Tesla has decided to make Indonesia its manufacturing hub after its plea to reduce import tariffs was declined by the Indian government.
Earlier today, Elon Musk
revealed that the $44 billion Twitter acquisition of Twitter has been put on hold.
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