Tesla Lays Its Plan To Sell EVs In India Aside Due To Higher Tariffs

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Tesla has put its plan to enter the electric car segment in India on the back burner. This is due to higher tariffs. So, Tesla won’t be selling EVs in the country anytime soon. Its attempt to reduce import taxes has come to a dead end. Tesla isn’t searching for showroom space now. It has reassigned some of its local teams to another post. This is due to the company’s failure to secure lower import taxes, three sources told Reuters.

Tesla made fewer cars in its Shanghai factory. This is due to COVID-19 lockdowns, It failed to secure lower import taxes in India. Tesla wants to ensure that there’s demand for its cars in the country. So, it plans to sell EVs imported from factories in US and China. The company was hoping to do this at lower tariffs. The government has dashed Tesla’s hopes of selling EVs in the country.

Tesla Halts Its Plan To Sell EVs In India

The Indian government is urging Tesla to manufacture locally. Tesla has to commit to making EVs in India. Later, India will consider lowering tariffs. The tariffs on imported vehicles could be as high as 100 percent. The American EV manufacturer was waiting for India to announce its budget on February 1. It was the company’s deadline. The country was likely to introduce tax changes. However, Tesla’s attempts to influence tariffs did not succeed.

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Prime Minister Narendra Modi’s government didn’t provide any concession. Tesla has to halt its plan to import electric cars into India. The sources understandably sought anonymity since the discussions above were private. Tesla was exploring real estate options. It wanted to open service centers and showrooms. It was searching for a showroom space in key Indian cities like Bengaluru. Mumbai and Delhi were also on the list.

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Tesla’s Debut In India In Jeopardy?

Sources claim that plan is also on hold. Tesla has reassigned some of its small teams in India. It will handle other markets. Manuj Khurana is Tesla India’s policy executive. However, he got a new role in March. He handles the “product” role in San Francisco. Tesla wants to sell 20 million EVs annually by 2030. Elon Musk spoke about selling Tesla EVs in India. He says that Tesla is facing challenges in India.

Modi is inviting manufacturers with the “Make in India” campaign. Tesla wants to gain an early advantage because India has a growing EV market. Tesla and Modi will have to reach an agreement soon.

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