Elon Musk, CEO of Tesla, announced on Thursday that the EV manufacturer is facing "a lot of challenges" in launching its cars in India. Musk tweeted, "Still working through a lot of challenges with the government.”
Musk was responding to a tweet that read, Yo @elonmusk any further update as to when Tesla will launch in India? They’re pretty awesome and deserve to be in every corner of the world!” Tesla plans to start selling imported vehicles in India this year, but the country's tariffs are among the highest in the world.
With a worldwide price tag of $39,990, the Tesla Model 3 may remain an inexpensive model in the United States, but with import charges, it would become unaffordable in the Indian market, with a projected price tag of over Rs 60 lakh.
Currently, India slaps a 100% import tax on imported cars costing more than $40,000 (Rs 30 lakh) inclusive of insurance and shipping costs, while cars costing less than $40,000 are subject to a 60% import tax. The government may consider cutting import duties as well as providing other benefits to Tesla, but in order to do so, the EV manufacturer would have to invest in establishing a manufacturing site in the nation. Earlier, Nitin Gadkari, Union Minister for Road Transport and Highways, stated that a Tesla car will cost around Rs 35 lakh in India.