Govind Tekale
Indians have been eagerly awaiting Elon Musk’s electric car company Tesla’s entry into the country for quite some time, but there are no signs of the cars hitting the roads. According to sources familiar with the matter, Tesla’s officials are no longer in contact with Indian authorities, leading to diminished hopes of Tesla advancing its presence in India. After Elon Musk postponed his planned visit to India at the end of April, his team has not initiated any further discussions with Indian officials.
It has been conveyed to the government that Tesla is facing capital issues and does not have plans for new investments in India in the foreseeable future. India’s interest in Tesla waned when the company reported consecutive declines in global quarterly deliveries and faced increased competition in China. Musk also announced layoffs in April. Tesla’s new model, the Cybertruck, is gradually entering the market after years of development, while construction of a new plant in Mexico has been delayed.
India recently reduced import taxes for foreign electric vehicle manufacturers who commit to investing at least ₹41.5 billion ($497 million) and starting local production within three years. This decision came shortly before Elon Musk announced his visit to India. Representatives from India’s Ministry of Heavy Industries, Ministry of Finance, and Ministry of Commerce and Industry, which oversee the automotive sector, have not commented on the matter. Musk canceled his India trip in April citing immediate company issues, which was supposed to include a meeting with Prime Minister Narendra Modi.
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As of the report’s release, representatives from India’s Ministry of Heavy Industries, Ministry of Finance, Ministry of Commerce and Industry, which oversee the automotive sector, did not respond to requests for comment. Tesla also did not respond to comment requests.
According to BloombergNEF data, India’s electric vehicle market is still in its early stages, with electric vehicles accounting for only 1.3% of total passenger vehicle sales last year. Many buyers remain hesitant due to high initial costs of electric vehicles and a lack of charging infrastructure.
