During a discussion with Indian Government officials today, Tesla suggested building a manufacturing facility in India. It would be a change in tactics after years of negotiations in the nation with the largest population.
Elon Musk has long predicted the inevitable introduction of Tesla in India, but high import tariffs have complicated matters. However, throughout the past year, there have been some signs that the manufacturer is gearing up for a launch.
In Bengaluru, the capital of the southern Indian state of Karnataka, Tesla formally formed an Indian corporation in 2021. Officials from the Indian government stated during the summer that they are taking Tesla’s request under consideration to significantly lower import taxes on electric vehicles, which have been the primary barrier for the firm to join the market.
However, the company wasn’t able to come to a deal on import tariffs, and in 2022, Tesla decided to put its plans to enter the Indian market on hold.
According to a report by Reuters, Tesla Inc has reportedly proposed setting up a factory in India to build electric cars for domestic sale and export. Citing a source with direct knowledge of the matter, the proposal comes after India refused to agree to Tesla’s request last year to lower the import tax on cars, which can reach as much as 100%.
As per the report, Tesla did not discuss lower import taxes with Indian officials. It only proposed setting up a new factory, albeit without specifying a location or investment. This would mark a change in strategy with starting sales in a market by first establishing production.
Reference- Reuters, Live Mint, Electrek, Inside EVs, Economic Times, Rushlane