‘Challenges with the government’ are delaying Tesla India’s introduction, according to Musk.
MUMBAI: Elon Musk, the billionaire entrepreneur, said on Thursday that Tesla was “working through” a number of problems with the Indian government ahead of the company’s long-awaited launch in the nation.
Efforts to negotiate reduced import tariffs, which may be as high as 100%, have hampered Tesla’s chances of selling its vehicles in one of the world’s largest marketplaces.
In response to a tweet inquiring about a possible India launch date, Musk stated that his California-based firm was “still working through a lot of problems with the authorities,” without providing any additional specifics.
Musk said in July that Tesla intended to enter India, which has 1.3 billion people, but that “import tariffs are by far the worst in the world of any significant country.”
He went on to say that the company was seeking temporary tariff relief.
In India, imported electric cars costing more than $40,000 are subject to a 100% tax, while those costing less than $40,000 are subject to a 60% tax.
Tesla is concerned that the high tariffs would drive them out of the cost-conscious Indian market.
New Delhi has given incentives for international automakers to build domestically, but Musk has stated that he prefers to test demand with imports first.
According to data by digital consultant Techarc, electric cars accounted for just 1.3% of all vehicles sold in the nation in 2020/21.
The government’s goal is for 30% of private automobiles to be electric by 2030, as part of a larger effort to decarbonize the transportation industry.
