The EV segment is making great strides in our country. We are seeing a lot of startups entering this segment. But this growth is expected to get a major boost with the entry of Tesla. Indian customers have been eagerly waiting for Tesla’s entry. However, according to recent reports, the brand is facing a lot of challenges with the Indian government. We have again spotted Tesla Model Y testing in India. In today’s article, we will see why is Tesla continuing testing despite issues here. 

Tesla in India – What was spotted?

Tesla in India

The Tesla Model Y was spotted testing in Maharashtra. The cars spotted were without any camouflage in blue colour. Tesla might be testing the car for date collection specific to Indian roads. The Model Y was unveiled in 2020. It shares a lot of parts with the Model 3, which is also being tested in India.

Tesla in India – Tax problems Tesla is facing

Tesla in India

Earlier this year, Elon Musk had tweeted that Tesla is facing a lot of challenges with the government. The biggest challenge Tesla is facing is high import duties. In India, 100% tax is levied with a CIF (cost, insurance, freight) value of more than $40,000. This will increase the overall cost of Tesla and will hamper its sales in India. The government has already clarified that it will not lower the taxes. It is forcing Tesla to set up a factory here.

Why is Tesla continuing testing?

Tesla in India

Tesla has not yet closed its doors for India. The brand has not stated anything that indicate its plans of dropping India from its expansion strategy. Considering this, continuing testing in the country does make sense. Moreover, more time spent testing would help the brand derive more accurate results, which will further help in making the car more reliable.

When can we expect the launch?

Tesla in India

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

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