Electric car maker Tesla has suspended plans to sell electric cars in India for the time being. The company has given up its search for a showroom location in India and has reassigned some of its domestic team after failing to secure a lower import tax. Recently, some experts of the company have told about this.
The decision comes after more than a year of standoff with government representatives, as Tesla sought to test demand for the first time by selling imported electric vehicles (EVs) from production centers in the United States and China at lower tariffs. Had it.
But the Indian government is committing Tesla to manufacturing locally before reducing tariffs. The government is imposing up to 100% import tax on the imported vehicles of the company. According to a Reuters report, Tesla had set February 1 as the deadline for India to reveal its budget and announce tax changes.
The company did this to see if its lobbying had yielded results. When Prime Minister Narendra Modi’s government did not offer a concession, Tesla shelved plans to import cars into India. If reports are to be believed, the company had discussed it privately.
For months Tesla had been scouring sites for real estate options to open showrooms and service centers in major Indian cities of New Delhi, Mumbai and Bengaluru, but that plan too has now been put on hold.
Tesla has assigned additional responsibilities for other markets to some of its smaller team in India. Its India Policy Executive Officer Manuj Khurana has held an additional “product” role in San Francisco since March. This information has come from his LinkedIn profile.
Recently in January, the company’s chief executive Elon Musk said that Tesla still faces a lot of challenges with the government regarding sales in India. But elsewhere, strong demand for Tesla’s vehicles and the impasse on import taxes prompted a change in strategy, experts said.
PM Modi has tried to woo manufacturers with a “Make in India” campaign, but his Transport Minister Nitin Gadkari said in April that it would not be a “good proposition” for Tesla to import cars from China into India.
But the Indian government won in January, when German luxury carmaker Mercedes-Benz said it would start assembling one of its electric cars in India. Tesla had tried to gain an early lead in India’s small but growing market for electric vehicles, which is currently dominated by domestic automaker Tata Motors.