Why Elon Musk’s Tesla Is Still Not Ready For India Launch

Tesla was originally coming to India last year with a rumored launch of its Model 3 (its most affordable car) with so many rumors along with test cars being spotted on our roads.

Tesla CEO Elon Musk and Prime Minister Narendra Modi. (File Pic)

New Delhi: If you are waiting for Tesla to launch in India as well, it will take much longer than what you think.

Tesla was originally coming to India last year with a rumored launch of its Model 3 (its most affordable car) with so many rumors along with test cars being spotted on our roads.

However, there is currently no concrete news on the launch.

Tesla CEO Elon Musk has just confirmed that the car-maker is “still working through a lot of challenges with the government”. 

It appears Tesla is looking at reducing import duties on its cars for its India launch since high import duties will mean high prices and in turn will mean lower sales expectations.

It seems first Tesla wants to sell the Model 3 and other products via the import route and then begin local manufacturing.

Hence, the carmaker wanted lower taxes for imported Tesla cars.

However, the fact is the government is keen to have Tesla make cars right from the start.

Musk, who had earlier said the import duties in India are amongst the highest for cars, wanted to first have them reduced which would have started the Tesla India launch plans.

Earlier, an Indian minister had asked Tesla not to sell its cars, which are made in China and make cars here from the first place.

The company is working out what to do in taking time to start a local manufacturing unit since imported cars would make Tesla’s expensive.

Tesla should start a local assembly of its Model 3 which would mean better volumes but will also require greater investment to begin with.

The company is already busy with huge demand worldwide and also developing its future products, while keeping focus on the Indian market will mean it would still be a long time before Tesla actually starts selling cars in India.

It depends on how things happen as Tesla can start sales of its imported cars and then set a factory in India or first set a plant here.