tesla: Tesla suspends plans to enter India

New Delhi: Tesla Three people familiar with the matter said they have shelved plans to sell electric cars in India, abandoned the search for showroom space and reassigned some of the domestic team after failing to secure the tax rates. lower imports.
The decision capped more than a year of deadlocked negotiations with government representatives as Tesla first sought to test demand by selling imported electric vehicles (EVs) from manufacturing hubs in the US and China. countries, with lower tax rates.
However, the government is pushing Tesla to commit to domestic production before lowering tariffs, which can be as high as 100% on imported cars. Tesla has set itself a deadline of February 1 to see if its lobbying will bear fruit, sources familiar with the company’s plans said. The sources added that, when the government did not offer concessions, Tesla kept the plan to import cars into India.
For months, Tesla has been looking for real estate options to open showrooms and service centers in the key cities of New Delhi, Mumbai and Bengaluru but that plan is also now on hold, two sources said. news said. Tesla did not respond to an email seeking comment.
A government spokesman did not immediately respond to a request for comment.
Most recently in January, the CEO Elon Musk said that Tesla “is still facing a lot of challenges with the government” related to sales in India.
However, strong demand for Tesla vehicles elsewhere and uncertainty over import duties prompted a change of strategy, the sources said. Modi has sought to attract manufacturers with his “Make in India” campaign, but his transport minister, Nitin Gadkarisaid in April that Tesla’s import of cars from China to India would not be a “good proposition” for Tesla.
But New Delhi won out in January, when German luxury carmaker Mercedes-Benz said it would start assembling one of its electric cars in India. Tesla soon gained an edge in India’s small but growing electric vehicle market, now dominated by the domestic carmaker. Tata Motors. Tesla’s $40,000 minimum price tag would put it in the luxury segment of the Indian market, where sales represent a tiny fraction of annual vehicle sales of around 3 million units. router

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