Tesla has described India as a very hard market and is carefully assessing the right time to make its entry into the country.
In the last couple of months, Tesla’s much awaited debut in India has hogged all the media limelight. Even though the electric vehicle company has confirmed the location of its two showrooms in Mumbai and Delhi, Tesla’s Chief Financial Officer Vaibhav Taneja has poured cold water by saying the company is still figuring out when is the right to enter the Indian market.
India is a tough market: Tesla CFO
On a Q1 earnings call, Taneja explained the complexity of the import tariff structure in India that makes Tesla vehicles more expensive than in other markets. He said that the price of a Tesla would be twice as much due to the “70% import tariffs, plus an additional 30% luxury tax”. He further said, “This creates a lot of anxiety among the customers because people feel they’re paying too much for the car.” He added, “… We are not getting the money. It’s going to the local government.”
There’s been a lot of speculation over the timeline of Tesla’s debut in India. Taneja did not reveal any specific date, but said, “India is a very hard market”, due to the import tariffs, “that’s why we’ve been very careful trying to figure out when is the right time”.
Tesla’s India strategy: What we know so far
Reports have suggested that the Indian Government is planning to slash import EV duties from 70% to 15% for manufacturers that commit to establishing facilities in India. Initially, Tesla will be importing the EVs directly from its Berlin plant in India.
According to Reuters, a Tesla dealership has been confirmed at Bandra Kurla Complex (BKC) in Mumbai. Based on the report, the company has signed a 5-year lease. The second showroom will be set up at Aerocity in New Delhi. Tesla also posted multiple job openings in India on its official LinkedIn site.
Unfortunately, with no official timeline in place, Tesla’s entry into the Indian market continues to be uncertain.
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This article was first uploaded on April twenty-three, twenty twenty-five, at twenty-seven minutes past five in the evening.