Is ‘Tesla India Dream’ dead?
Indian customers have been eagerly waiting for Tesla’s entry into our country for many years now. Tesla has also shown the same eagerness, considering the market potential in India. But the latest development seems to have cast a shadow of doubt about seeing Tesla’s entry in the country. Tesla CEO Elon Musk in a recent tweet has made clear his vision regarding Tesla’s plans for India. So, what is this new development? In today’s article, let’s find out.
What is the new development?
As we all know, Elon Musk is quite active on Twitter. Earlier, he had tweeted how he was working with the Indian government to bring Tesla to India. But now, the talks seem to have met a barrier. One Twitter user recently asked Musk what Tesla’s future is in India. To this, Musk replied that Tesla will not be establishing a manufacturing plant in any location where it is not allowed to sell cars. This comes after Nitin Gadkari a few weeks ago made it clear that Tesla is welcome to setup shop in the country but will not be allowed to import cars from China to sell here.
Tesla India plans – What is the major issue?
But where are both parties stuck? The major issue here seems to be the high import taxes in India. In India, 100% tax is charged on CBU cars with a CIF (cost, insurance, freight) value of more than $40,000. Elon Musk has been asking the government to exempt this charge for Tesla. But the government has clearly stated that it will not give special concessions to one manufacturer. So Tesla is left only with one option, which it clearly doesn’t want to take.
Tesla India plans – Is this the end of Tesla’s India dream?
For now, it seems that Tesla and the government can’t meet at a middle ground. But we certainly hope both work out an amicable solution. Tesla entering the Indian market would be a big boost for the EV segment in our country. Moreover, everyone has eagerly been waiting for Tesla’s India entry and this sentiment could really work in the favour of Elon Musk and Tesla.
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