The EV space has been picking a lot of steam all over the world. The biggest contributor to this growth has been Tesla. Tesla has revolutionized the EV segments with its autonomous car and supercharging network. In India, too, the EV industry is picking up pace, but the entry of Tesla will accelerate the growth. Tesla is also keen to enter the Indian market. But it is facing some problems in its Indian entry. In today’s article, we will see the major problems Tesla is facing in India.

Tax issues

Tesla in India

Tesla is facing an issue with import taxes. Elon Musk has mentioned that import taxes in India are considerably higher than in any other country. In India, 100% tax is levied on CBU cars with a CIF(cost, insurance, freight) value of more than $40,000. This will increase the overall price of the Tesla cars considerably and will not help them to price their cars competitively. Tesla can either set up a plant in India which they don’t want so early or the government can lower the tax which the government is thinking about but nothing concrete has happened yet. Read more on this issue below.

Low ground clearance

Recently it was reported that the vehicle’s low body is slowing its launch in India. Tesla has been testing out their vehicles on the Indian roads to better assess them. The Tesla Model 3 has a ground clearance of 115mm which is too low for Indian roads. During the trials, it scrapped a lot of speed breakers and potholes. Tesla will have to increase the ground clearance to at least 140-150mm. Tesla will have to either launch Model Y or give its cars air suspension. 

When can we expect Tesla cars in India?

Tesla in India

Currently, there are only rumours and speculations. India is a big market so Tesla will not want to miss it. The government is also pushing towards an EV revolution so they will also want Tesla to launch cars in India. We can expect Tesla cars in India by next year. 

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