- By Aditya Pratap Singh
- Fri, 21 Feb 2025 11:35 AM (IST)
- Source:JND
Tesla India Launch News: Elon Musk's electric car maker company 'Tesla' is preparing to start its much-anticipated entry into the Indian market. The EV giant is set to deliver thousands of cars to a port near Mumbai in the coming months. The company is making fresh moves in India following a meeting between CEO Elon Musk and Prime Minister Narendra Modi in Washington.
Following that meeting, Tesla indicated it had posted jobs for showrooms and delivery operations, signalling its commitment to establishing itself in the Indian market.
According to Bloomberg, the US-based automaker plans to start selling automobiles in Mumbai, Delhi and Bangalore by the third quarter of this year, depending mainly on advanced negotiations between the US and Indian governments on import duties. Currently, India levies a hefty tax of 110% on cars priced over $40,000. Tesla is seeking lower duties, which would make it easier for its cars to be consumed in the Indian market.
Policy changes could change Tesla's strategy
As part of a broader trade deal with the US, India is reportedly looking to ease import restrictions on electric vehicles. The government could raise the import limit for EVs eligible for concessional duty from Rs 8,000 to ₹50,000. Officials are also examining a reduction in import duties and lower duties for certain models, which could substantially impact Tesla's price and its market position in the country.
Tesla faced disruptions in global sales, with vehicle deliveries falling for the first time in over a decade. The rise of its Chinese rival BYD and a drop in demand in Europe are slowing Tesla's entry into new markets. A potentially large group of wealthy consumers could open up lucrative opportunities in India, but Tesla's entry could also threaten the domestic automotive sector, which employs thousands in local factories.
Tesla's initial plans for imports
Tesla is still focusing on imports for its initial venture in India, despite earlier speculations about setting up a final assembly plant in the country. Local assemblers will take advantage of local tax incentives; nevertheless, Tesla has not made concrete plans for local manufacturing.
One of its first initiatives will be the launch of an online booking platform. Daily operations have been handed over to Tesla systems veteran Prashant Menon, who leads the company from the Pune office.
Moreover, Musk's meeting with Modi reiterated his role of becoming an informal advisor to US policymakers about discussions about global trade and technology.
The reception Tesla's premium EV receives in India and the government's attitude on import duties will go a long way in deciding the company's fate in India, as Tesla's entry strategies are coming to an end.
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