Tesla has hit a roadblock in its India entry plans as the government is not willing to reduce import duties on electric vehicles. The company has temporarily halted its plans to enter the Indian market.
Elon Musk says Tesla will not manufacture in India unless it is allowed to sell, service cars
Bengaluru: Electric car maker Tesla Inc will not manufacture in India till it is permitted to sell and service its cars in the country, founder and chief executive Elon Musk said in a Twitter post on Friday.
The tweet came in response to a user query about the company’s manufacturing plans for India.
“Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars,” Musk tweeted.
Tesla’s entry into the country has been on hold since 2019 as India levies a 60% import duty on EVs priced $40,000 or lower. The import duty is 100% on EVs priced more than $40,000.
The US-based maker of the Model S and Roadster hired its first employee, Manuj Khurana, as its head of public policy in March 2021.
AutoBizz reported on May 5 that employees at Tesla India had been reassigned to work for the larger Asia-Pacific region.
According to some reports, the company has shifted focus to the Indonesian market and may even set up a plant there.
The Indian government is bullish on EVs and has introduced several incentives to spur manufacturing as well as demand for electric vehicles.
This includes the Rs 10,000 crore FAME II (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India) and the Rs 18,000 crore production-linked incentive (PLI) schemes.
AutoBizz reported earlier that the government had expected Tesla to participate in the PLI scheme.
Union Minister for Road Transport and Highways, Nitin Gadkari, has previously urged Tesla to not import vehicles from China. Earlier this month, Gadkari said that if the US-based EV firm manufactures its cars in India then the company would get the required benefits.