Tesla halts Plans to Sell Electric Cars in India

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Tesla halts Plans to Sell Electric Cars in India
14 May 2022
min read

News Synopsis

Tesla Inc has announced a hold on its plans to sell electric cars in India, along with abandoning its search for showroom space and reassigning some of its domestic team after not being able to secure lower import duties

The decision is taken after more than a year of deadlocked talks with the government representatives as Tesla sought to first demand by selling its EVs imported from production hubs in the United States of America and China, at lower import duties. 

But the government of India is still asking Tesla to manufacture its cars in India locally before it plans to lower the tariffs, which can be as high as 100% on imported vehicles. 

According to the company’s sources, Tesla has set a deadline of February 1, to see if its lobbying brought a result. But, when the government of India did not offer a concession, the company decided to put a hold on its plans to import cars into India. 

Indian Prime Minister Narendra Modi is planning to invite manufacturers with the “Make in India” campaign and the Transport Minister of India, Nitin Gadkari has also said that it would not be a good proposition for Tels to import cars from China to India.

TWN In-Focus