Proposed Tesla’s investment in India gets the limelight every couple of months. The willingness of Elon Musk to thrive in the Indian market is not hidden. But the deal gets stuck on the business obstacles that need to be solved before working on the project.
The Economics Times said, “Tesla Inc is willing to set up a factory of the posh electric cars in India only if the government approves a concessional duty of 15% on imported vehicles in the first two years of operations in India.”
Currently in India buying an imported Ev is very expensive, as the import tax is as high as a big amount of a car. It is due to high import tax and duties that make it unaffordable.
Recent reports say Tesla would be willing to invest $500 million in India if agreement for at least 12000 vehicles on the new proposed 15% import tax for EVs is done. But no official comment from the government is a ray of hope.
Bloomberg stated that Tesla is now on the verge of finalising a deal with the Indian government that would permit the company to import its electric vehicles into the country starting next year, as well as establish a manufacturing plant within a span of two years
Additionally the company is also aiming to broaden its reach by launching its most affordable model, starting manufacturing of some batteries on Indian soil to reduce cost.
