'We want to, but...': Elon Musk reveals what's keeping Tesla from launching in India

Elon Musk on July 24 said that Tesla wants to launch cars in India, however, the nation’s import duties on EVs (Electric Vehicles) are “highest in the world by far”. Tesla has already announced its entry in India and even registered the company in Bengaluru in January this year. However, EV car enthusiasts are still eagerly waiting for the car to be visible on Indian roads. Twitter user and YouTuber Madan Gowri reached out to the Tesla chief himself on Twitter and demanded him to launch Tesla cars in India. 

Responding to the post, Musk said that he wants to do so, but import duties under PM Narendra Modi’s administration are the highest in the world. Musk even said that clean energy vehicles in India are treated the same as diesel or petrol, which is “not consistent with the climate goals” of the nation. In the following tweet, however, the Tesla CEO added that he is “hopeful” that there will be a temporary tariff relief for electric vehicles. 

Responding to another user, Musk even said that the factory set up in India was “quite likely" should Tesla get a green signal with import duties. It is worth noting that currently, India imposes 100 per cent import duty on fully imported cars with CIF (Cost, Insurance and Freight) value more than $40,000 and 60 per cent on those costing less than the amount. Tesla, on the other hand, has registered a local company in India and has ramped up local hiring. 

Tesla Model 3 may touch Rs 70 lakh in India 

Tesla has already started testing the Model 3 Electric Compact Sedan in India. While Tesla Model 3 is sold at around USD 39,990 abroad which amounts to approximately Rs 30 lakhs, its launch price may be higher in India and may touch Rs 70 lakh due to the high customs duty that foreign car manufacturers have to pay in the country. The US electric car manufacturer, Tesla, set foot on Indian soil in January 2021 with an R&D unit in Karnataka's Bengaluru city.

Meanwhile, other automakers in India have also lobbied the government in the past to lower taxes on imported cars. But they have had little success due to opposition from rivals with domestic operations. Mercedes Benz began selling its EQC luxury EV in India last year for $136,000, and Audi launched three electric SUVs this week with sticker tags that begin at around $133,000.

(Image: AP/Twitter)