3 reasons Why Tesla is not launched in India?
- The government has maintained high import duty on electric vehicles.
- Tesla to commit to manufacturing locally before it will lower traffic which can run as high as 100% on import vehicles.
- The main reason for the government is to prevent all automakers to import EVs produced outside the country.
In the media, Minister of Road Transport & Highways, Nitin Gadkari said that should manufacture his car in India than sell it in India. “He would be able to increase profit and it will be good for the economy ” when speaking to CarToq.com
What report Said?
Nitin Gadkari Said: “Elon Musk is ready to manufacture Tesla in India then there is no problem. We have got all competencies, the vendors are available. We have got all types of technology and because of that Elon Musk can reduce the cost but our request to him is that to come to India, and start manufacturing here. India is a huge market, there are exports and ports available. He can make his exports from India and he is welcome and they do not have any problem. But suppose you want to manufacture in China and sell in India then that will not be a good proposition for India. Our request to him is to come to India and manufacture here”.
On May 13, in New Delhi, Tesla American automotive company officially put India’s entry plan on hold after a deadlock in traffic.
Tesla($TSLA) has abandoned its plan to enter the Indian market, abandoned a search for showroom space, and even started to reassign its employees, the Indian government is not ready to reduce high import traffic for foreign electric vehicles.
India has the largest auto market, As per the invest India gov report India’s annual production in FY 2021 was 22.7 Mn vehicles and 13 million vehicles from April to October 2021, including Maruti Suzuki, which holds 49.98% of the market share in India’s car and has a record to sold 1.6Lakh units in the year 2017-18, this is the reason why all company wants to enter in the Indian market, Tesla is one of them.
The conversion takes more than a year of deadlock talks with the Indian government, Tesla said to government representatives to first test demand by selling electric vehicles then they set up a plant and also request to import from the production Hub in u.s and china to lower traffic.
The government has maintained high import duty on electric vehicles, pushing Tesla to commit to manufacturing locally before it will lower traffic which can run as high as 100% on import vehicles. The main reason for the government is to prevent all automakers to import EVs produced outside the country.
Recently, Tesla’s electric vehicle has been seen testing on Indian roads and seven Tesla electric vehicle Models are selected to launch in India.
It has been spotted that most automakers are waiting for the Indian govt. to reduce high import duty but, but after tesla’s strong effort it wouldn’t be done.
“Tesla Inc. has put on hold plans to sell electric cars in India, abandoned a search for showroom space, and reassigned some of its domestic team after failing to secure lower import taxes, three people familiar with the matter told Reuters.“
Tesla assigned responsibilities for other markets to some of its small teams in India. Its India policy executive Manuj Khurana has taken on an additional “product” role in San Francisco since March, his LinkedIn profile shows. as per the Reuters report
Why isn’t Tesla launching in India?
In the media, Minister of Road Transport & Highways, Nitin Gadkari said that should manufacture his car in India than sell it in India. “He would be able to increase profit and it will be good for the economy ” when speaking to CarToq.com
What is the reason Tesla isn’t launched In India?
The government has maintained high import duty on electric vehicles.
Tesla to commit to manufacturing locally before it will lower traffic which can run as high as 100% on import vehicles.
The main reason for the government is to prevent all automakers to import EVs produced outside the country.