Elon Musk Blames Government For Delay in Tesla India Launch

There have been several speculations on the Tesla India launch but the renowned electric carmaker has already written to think-tank Niti Aayog recommending a reduction in federal taxes on imports of electric cars through the CBU route to 40%

It’s been a few years since everyone has been speculating on the launch of Tesla EVs in India. In fact, in recent developments, the renowned electric carmaker has even expressed a high interest in entering India, the world’s 4th fastest growing car market. With this, the followers of both the car company and Elon Musk have been eagerly waiting for these cars to launch in India. Recently, someone tweeted to Elon Musk asking him to launch the cars in India ‘ASAP.’

Tesla india launch elon musk images

In response to the Tweet, Elon Musk was quick to reply that he wants Tesla India launch to happen at the earliest but the import duties here are the highest in the world. However, Musk even said that he’s hoping that the government would provide temporary relief for EV makers. He said,”We want to do so, but import duties are the highest in the world by far of any large country,” Musk said in reply to a tweet about launching the company’s cars in India. But we are hopeful that there will be at least a temporary tariff relief for electric vehicles.”

Also Read: Challenges For Tesla In India- Can Autonomous Driving (Tesla Autopilot) Technology Work In India?

That said, the electric carmaker’s request to reduce the tariffs is likely going to face tough resistance from PM Narendra Modi’s administration as it has always levied high taxes on imports in order to promote the local manufacturers. Currently, the import duty on cars priced below USD 40,000 is pegged at 60 per cent, while that for cars costing more than USD 40,000 is 100 per cent. At this rate, most of the CBUs end up being exorbitantly priced as compared to most other markets across the globe. Also, right now, the only model in the carmaker’s portfolio that is priced below USD 40,000 is the standard range version of the Tesla Model 3.

Elon Musk Tesla India Launch

Also read: What is Tesla’s Autopilot? How does it avoid accidents?

Speaking on this scenario, an unidentified source has said,”The argument is that at 40% import duty, electric cars can become more affordable but the threshold is still high enough to compel companies to manufacture locally if demand picks up.” In spite of the high taxes though, Tesla is confident it would enter our car market in near future and even setup local assembly operations in case the demand for the Model 3 is sufficient. However, it now remains to be seen if the Modi administration would lower the import tariffs in order to help biggies like Telsa to make it inroads into the country’s fast-growing EV market.

Also read: EV (Electric Cars) segments in India – Where will Tesla fit in?

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