Tesla CEO Elon Musk Says 'Working Through Challenges' With India Government When Asked About Launch

Musk didn't detail the "challenges" being worked on in his tweet.

By Reuters | Updated: 13 January 2022 12:15 IST

Tesla CEO Elon Musk Says 'Working Through Challenges' With India Government When Asked About Launch

Tesla's demands for tax cuts have prompted objections from several local players

Highlights

Tesla is holding out for a cut in import duties
The Indian market for premium EVs is still in its infancy
Indian government officials are divided over the US automaker's demands

Tesla is "still working through a lot of challenges with the government" in India, its billionaire chief executive Elon Musk said on Twitter on Thursday, responding to a question on when it would launch its electric cars in the country.

Tesla had plans to begin selling imported cars in India last year and has been lobbying the government to slash import taxes on electric vehicles (EVs) before it enters the market. In October, it took its demands to Indian Prime Minister Narendra Modi's office.

Musk didn't identify the "challenges" being worked on in his Twitter post.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

Still working through a lot of challenges with the government
— Elon Musk (@elonmusk) January 12, 2022

The Indian market for premium EVs is still in its infancy and charging infrastructure is scarce. Just 5,000 of the 2.4 million cars sold in India last year were electric, of which a handful were luxury models.

India levies an import duty of as high as 100 percent on imported cars, including EVs, which Musk has previously said are among the highest in the world. Analysts have said that at these rates Tesla cars would become too costly for many buyers, crimping sales.

India Said to Consider Sharp Import Tax Cuts on EVs After Tesla Lobbying

Tesla's demands for tax cuts - first reported by Reuters in July - have prompted objections from several local players, who say such a move would deter investment in domestic manufacturing.

Indian government officials are also divided over the US automaker's demands. Some officials want the company to commit to local manufacturing before considering any tax breaks, but Tesla has indicated it first wants to experiment with imports.

Even as Tesla is holding out for a cut in import duties, luxury carmaker Mercedes-Benz will start assembling the electric version of its flagship S-Class sedan, the EQS, in India later this year.

© Thomson Reuters 2022

Xiaomi India speaks exclusively to Orbital, the Gadgets 360 podcast, on their plans for 2022 and pushing for 120W fast charging with the 11i HyperCharge. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.