Tesla has postponed plans to enter the Indian market after local officials failed to agree to reduce import duties.
The electric car maker was initially looking to enter the Indian market by selling EVs imported from its facilities in the US and China. Tesla had hoped to be able to do so at a lower tariff rate than usual but the Indian government promised the company to produce locally before lowering tariffs, which is currently set as high as 100 per cent for imported vehicles.
Sources close to Tesla have given this information Reuters The automaker, which has been holding back its plans since February 1, the day India announced changes to its budget and taxes but made no concessions to Tesla.
Read more: India has not told Kasturi not to give tax break on imported EVs
It is understood that the carmaker scouted areas in New Delhi, Mumbai and Bangalore to set up showrooms and service centers. It has also set up a small team to work on a launch in India.
In April, Indian Transport Minister Nitin Gadkari said it would not happen [be] A good offer for Tesla to import Chinese-made cars to India. The statement came after more than a year of lobbying from Tesla and CEO Elon Musk to reduce local tariffs.
Reuters It is to be noted that strong demand for Tesla cars in other markets has also contributed to the decision to suspend the Indian plan.
In the first quarter of this year, Tesla delivered 310,048 vehicles, 95 percent of which were the Model 3 and Model Y, while the remaining cars sold were the Model S and Model X.