Tesla Motors Put India Launch Plan On Hold Amid Multiple Hurdles

Tesla boss Elon Musk has now set a new condition before rolling out operations in the country.

Replying to a user on Twitter, Elon Musk said, “Tesla will not put a manufacturing plant in any location where we are not allowed to sell and service cars”. Elon also stated that if Tesla is able to succeed with imported vehicles, then a factory in India is quite likely.

Tesla had planned to import electric vehicles to India directly from United States and China at lower tariffs. However, the Indian government has stood firm on its decision to promote local manufacturing. The 2022 Union Budget did not contain any clause regarding lower tariffs for imported electric vehicles. Hence, Tesla Motors want to understand the Indian market before investing in local manufacturing.

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Importing electric vehicles without any cut downs on tariffs will increase the cost of Tesla cars exponentially, leaving little to no scope for success in the country. However, it is worth mentioning that other carmakers like Mercedes-Benz and Audi are selling their respective electric vehicles via the CBU route and have found success in the country. Mercedes-Benz have also confirmed their plans to locally assemble the flagship EQS sedan at their plant in Chakan.

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Tesla Motors formed their Indian arm by setting up their headquarters in Hyderabad in 2021. Since the formation, Tesla India have actively been in talks with the Indian government for lower tariff on direct imports but the talks have led to nowhere. As per rumours, Tesla India have halted their search for dealership locations and the team has been given different global regions to work on. As of today, there is no active development when it comes to Indian operations of Tesla Motors.

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