Indian customers have been eagerly waiting for Tesla’s official debut in the country. Elon Musk, the CEO of Tesla, has several times mentioned Tesla’s eagerness to enter the Indian market. The Tesla Model 3 is regularly spotted testing in Maharashtra. However, the latest development hints towards the brand facing a lot of challenges with the Indian government. In today’s article, we will see Tesla’s problems in India.

What is the latest development?

Tesla problems India

Elon Musk is quite active on Twitter and does reply to a lot of people. One such Twitter user asked Elon Musk about any further updates regarding Tesla’s launch in India. To which Elon Musk replied that Tesla is working on it but is facing a lot of challenges from the government. 

What could be the Tesla problems in India?

Tesla problems India

Earlier, Elon Musk had mentioned that import duties in India are considerably high compared to other countries. 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 Tesla cars considerably and will not help them to price their car competitively. Tesla can either set up a factory in India or the government can lower the taxes, which the government is thinking about, but nothing concrete has happened. 

Tesla problems India- Low ground clearance

Tesla problems India

Another issue Tesla is facing is low ground clearance on its Tesla Model 3. The Model 3 has a ground clearance of 115m. During trials, the Model 3 scrapped a lot of potholes and speed breakers. Tesla will have to either increase the ground clearance or launch the Model Y. 

When can we expect the launch?

Tesla problems India

Currently, there are only rumours and speculation. India is a big market, so Tesla will not want to miss out on it. Considering the government’s ambitions on electric vehicles, it will also want Tesla to launch cars in India. We can expect a clear timeline for the launch in the upcoming months. 

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