Tesla Inc has long wanted to enter the Indian market, but the current government’s strict import regulations are one cause of the delay.
In what is perceived as super exciting news for all electric vehicle (EV) fans, particularly Tesla fans, the American electric vehicle maker could enter the Indian market next year. And there is a formidable authority to back up this claim.
The development was confirmed by none other than Elon Musk, CEO of Tesla Inc. on social media. An unofficial Tesla fan club with the Twitter username @TeslaClubIN asked Musk when the company planned to enter India as a carmaker. To which the founder of Tesla replied: “Next year for sure.”
In response to a post on the microblogging site showing T-shirts printed with messages: ‘India Wants Tesla’ and ‘India Love Tesla’, Musk wrote: “Thanks for waiting.” Shortly after this, the tweet went viral as it attracted a lot of attention, especially from Indians.
Current Scenario for Electric Vehicles in India
Interestingly, this development comes at a time when Tesla’s entry into the Indian market was recently announced earlier this month. According to some reports, Tesla has been in talks with some Indian government officials to open a research and development facility in the country. According to the report, Tesla also showed some interest in investing in a research and innovation center in Karnataka.
The report suggests that the talks are still in the preliminary stages. The company thought of Karnataka because it was the first state in India to establish a policy dedicated to electric vehicles. Seeing this, many other states like Delhi have followed suit with their own electric vehicle policy. Tesla’s entry into India comes at a time when the central government is pushing hard for the electric vehicle segment. The government in the recent past has been promoting the manufacture and use of electric vehicles very widely.
Why the delay
Musk had previously admitted that he would have Tesla set up his business in India. However, there are still some big obstacles overcome, as import tariffs in India are as high as 100 percent, which could make Tesla electric cars out of reach for most Indians. Tesla seeks temporary relief from the government on import sanctions and restrictions. However, the only sustainable solution for this is to locally manufacture Tesla products in India.
First Tesla in India
The latest Tesla product in its portfolio has been the Model 3, which is made in China. Has already been sold 11,000 Model 3s in China in August of this year. The American electric vehicle brand is also setting up a new car manufacturing plant in Shanghai, which is expected to start operating from next year. It is this car that is expected to be the first Tesla to be launched in India.
