Tesla Launch In India: Why are Tesla cars not coming to India? Elon Musk updated

Elon Musk On Tesla Launch In India: If you are waiting for Tesla to launch in India, then it will take longer than you think. Actually, it was being said that Tesla was coming to India last year with its Model 3 (its cheapest car). There were many rumors about this. It was also said that Tesla cars have been seen testing on Indian roads. However, the truth is that there is currently no concrete news on the launch. Tesla CEO Elon Musk has confirmed that the carmaker is “still working on a lot of challenges with the government.”

It seems that Tesla is trying to reduce the import duty on its cars for the launch in India as higher import duty would mean higher prices and in turn, lower sales expectations. It is also believed that Tesla wants to first import and sell the Model 3 and other products and then start manufacturing in India. Therefore, the carmaker wanted lower taxes for imported Tesla cars. However, the fact is that the government wants Tesla to manufacture cars in India from the very beginning.

Elon Musk has earlier said that India has the highest import duty for cars and wants it to be lower first, to initiate Tesla India launch plans. At the same time, earlier an Indian minister had told Tesla that he should not sell cars made in China to India and make cars here from the beginning.

It seems that Tesla is taking time to figure out what to do about starting a local manufacturing facility because Tesla cars will be expensive if imported and sold. Tesla should begin local assembly of its Model 3, which would mean better volumes but would also require more investment to get started.