January 23, 2022

Tesla launch in India: Elon Musk shares an update – Mint

Tesla founder and CEO Elon Musk on Thursday informed that the US-based EV-maker is facing a ‘lot of challenges’ for its car launch in India, and the company is working with the govt to overcome obstacles.

“Still working through a lot of challenges with the government,” Musk tweeted.

Musk was replying to a Twitter user, Pranay Pathole, who asked, “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!”

Tesla has urged Prime Minister Narendra Modi’s office to slash import taxes on electric vehicles before it enters the market, four sources told Reuters, ratcheting up demands that faced objections from some Indian automakers.

Tesla wants to begin selling imported cars in India this year but says taxes in the country are among the highest in the world. Its request for tax cuts prompted objections from several local players, who say such a move would deter investment in domestic manufacturing. 

Musk had also raised his reservations about launching EVs in India due to the high import duties. Musk hopes for a ‘temporary tariff relief for electric vehicles’ as Tesla continues to lobby hard to reduce the taxes before it officially launches any cars in India. 

Musk had said that Tesla wants to launch its cars soon in India, but Indian ‘import duties are the highest in the world by far of any large country!’ He had also said that a Tesla ‘factory in India is quite likely’ but at the condition that its imported cars first succeed in the country.

India currently demands customs duty ranging between 60 per cent to 100 per cent on imported cars. India imposes 100% import duty on fully imported cars with CIF (Cost, Insurance and Freight) value over $40,000, while 60% duty is imposed on cars that cost less than the amount.

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