Tesla facing challenges with Indian government: Elon Musk
Automaker Tesla is facing obstacles with the Indian government in order to launch its vehicles in the country, said CEO Elon Musk. "Still working through a lot of challenges with the government," Musk responded to a tweet asking about Tesla's plans to introduce its vehicles across India. Tesla had notably requested a reduction in import taxes on electric vehicles (EVs) in India last year.
Why does this story matter?
The EV revolution is sweeping the world, but India is trailing behind in terms of infrastructure, sales, and manufacturing. Tesla's much-anticipated entry into the Indian market would imply the growth of India's initiative to boost the purchase of EVs. Tesla is projected to make big profits in India due to its population. The company has a market valuation of roughly $1 trillion.
Not providing such levies to anybody: Indian government
Earlier, the Indian ministry of heavy industries had requested Tesla to start manufacturing its EVs in India before considering any tax concessions, government sources told PTI. Such concessions are not given to any manufacturer, and offering Tesla duty concessions will not send a positive message to other companies, they said. India has one of the highest import tariffs in the world.
What does Tesla seek from India?
Last year, Tesla said the effective import tariff of 110% on cars with a customs value of more than $40,000 is "prohibitive" for zero-emission vehicles. It had asked the government to lower the tariff on EVs to 40%, regardless of the customs value, and eliminate the 10% social welfare levy on such vehicles. This would help the Indian EV ecosystem grow, it had said.
Last year, Tesla registered its Indian arm
Tesla had registered its Indian branch in January 2021, indicating that the corporation plans to enter the Indian vehicle market. Tesla India Motors and Energy Pvt Ltd was registered with the Registrar of Companies in Bangalore, according to a regulatory filing.
EV sales in India
India's EV market is predicted to develop at a compound annual growth rate (CAGR) of 90%, reaching $150 billion by 2030, states a report by the consulting firm RBSA Advisors. India merely penetrated the market, as EV sales accounted for only 1.3% of the total vehicle sales in 2021. By 2030, India's switch to EV might save roughly one giga-tonne of carbon dioxide emissions.
Tesla sales around the globe
In the fourth quarter of 2021, Tesla delivered 308,600 units to customers, as per an update release released by Tesla. In 2021, Tesla manufactured over 9.3 lakh vehicles worldwide, up from over 5.1 lakh in 2020. Tesla is also interested in expanding into other markets, like Europe and China, the update stated. The EV market in the US is notably dominated by Tesla.
