Why will Tesla not come to India? We Indians are eagerly waiting for Tesla to launch in India, but is it really going to happen for real? If yes, then when? And if no, then why? These are questions everyone had in their minds when Elon Musk talked about launching Tesla in India.
India wishes to join the bandwagon for electric vehicles and introduces policies like China to follow its green ambitions. However, there's a wrinkle: the old, protectionist instincts that international automotive companies have maintained for decades.
Now, Elon Musk has again smashed hope that Indian customers could see Tesla cars on Indian roads following reports that Tesla could be entering the Indian market next year. Tesla CEO Musk said in an interaction with Tesla that import duties are extremely high in India and that higher duties make Tesla's cars inexpensive.
In the past couple of years, Tesla CEO has moved forward and back on his entry to India. In a recent interaction with IIT students, the CEO of Tesla said that in 2020, the car could be operated on Indian roads.
But Musk said now that India's current rules on imports prevent it from entering the country. "By selling their cars there in advance, Tesla can pay in parts for local factories. This also helps them feel the demand for their country's cars. In India, however, current rules on imports prevent this, "Musk said.
"But here is a little light at the end of the tunnel. Musk believes the recent changes to India's sales tax could be useful in the future, "He added that.
Last year Tesla established its Indian unit, Tesla India Motors and Energy Pvt. Ltd, which aims to enter its potential growth market for electric cars. The company based in California has also begun hiring top managers to prepare the ground before possible start-ups.
Tesla's registration has been finalized and approved in India for four of its models. Though we don't yet have any names, the variants are probably Model 3 and Model 4," tweeted by Tesla Fan Club India.
The approval does not necessarily entail an immediate start. The company headed by Elon Musk asked India to reduce import duties regarding electric vehicles and related parts.
The company based in California has also begun hiring top managers to prepare the ground before possible start-ups. Elon Musk-led has called on India to cut the import duty on electric vehicles and associated parts, as its vehicles are originally expected to be fully constructed.
But making a car doesn't simply mean having the parts — manufacturing precision and quality are also critical. Nobody is more aware of this than Musc, who went through his own "hell production" in Tesla's factory in Fremont, Calif., to make five thousand Model three sedans.
Yet, India has not developed the capacity necessary to extract large-scale output. Consequently, although it has its potential, the country has failed to become a big exporter of quality automobiles on the world markets. Most foreign manufacturers have struggled to take hold of the penalties for using local content, which means large investments with relatively low income.
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