Tesla is facing a lot of challenges in entering the Indian market, says Elon Musk

Tesla is facing a lot of challenges in entering the Indian market, says Elon Musk
Elon MuskIANS
  • Elon Musk has responded to an Indian fan asking for an update on Tesla’s launch in India.
  • Musk said that the company is working through a lot of challenges with the government.
  • One of the issues that is already known is the imposition of high import duties.
One of the questions that is frequently asked to Elon Musk has been “When will Tesla launch its cars in India?”. Once again, a fan from India asked this question and Elon Musk shared an update.

Pranay Pathole, in a tweet said, “Yo @elonmusk any further update as to when Tesla's will launch in India? They're pretty awesome and deserve to be in every corner of the world!” Responding to this, Musk said that “Still working through a lot of challenges with the government.”

Tesla had received approval in India for four models in August 2021 and another three models in December 2021. While the models have not been revealed yet, the Model 3 and Model Y have reportedly been spotted in the country.

One of the issues being faced by the Elon Musk-led company is the imposition of import taxes. Tesla had urged the Indian government to slash import taxes on electric vehicles and even requested a meeting between Musk and Prime Minister Narendra Modi.

The Indian government levies a 60% import tax on electric vehicles priced $40,000 or less, and 100% on those priced above $40,000. In comparison, Tesla cars start at $44,690 (approx. ₹33,41,780) in the US, meaning Tesla’s cars will face a 100% import tax in India, hampering the company’s sales.

While Tesla has been requesting for a reduction in import duties for some time now, Indian companies like Tata Motors have opposed such a move as it would incentivize imports and go against the country’s plans of boosting local electric vehicle manufacturing.

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