Tesla’s Model 3 has now become the best selling electronic vehicle in the world, but is still yet to make its entry in the Indian market. However, Tesla owner Elon Musk has once again hinted that the company wants to launch it’s cars in India, but is holding back due to a few reasons.
Will Tesla enter the Indian market soon?
A user took to Twitter to ask Musk to bring his brand of electronic cars to India. Here’s what Musk replied to him:
“We want to do so, but import duties are the highest in the world by far of any large country! Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India.”, Musk said in his reply.
“But we are hopeful that there will be at least a temporary tariff relief for electric vehicles. That would be much appreciated,” he added.
We want to do so, but import duties are the highest in the world by far of any large country!— Elon Musk (@elonmusk) July 23, 2021
Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India.
Tesla registered its Indian entity only earlier this year and it’s Model 3 was spotted for testing in India. However, that did not happen because a Model 3 would be more than 2 times its US price even if it were to be imported from China.
Tesla’s Model 3
Despite being the best selling electric vehicle internationally, Tesla’s Model 3 is an expensive car for the Indian market. Adding custom duties to it, it will compete with luxury cars from German manufacturers like BMW and Mercedes.
India has high import tariffs because of the Central government which wants to boost local manufacturing. Musk describe’s India’s import taxes as the highest in the world, but despite that, Tesla is sure that it would enter the Indian market in the future. We now have to see if the Modi administration would lower the import tariffs in order to help Telsa make it’s entry into India’s growing EV market.