In response to netizens' questions about when to launch electric cars in India, Tesla CEO Elon Musk (Elon Musk) said that Tesla was "still dealing with many challenges brought by the local government" in India, according to foreign media reports. However, Musk did not clearly point out the "challenges" being addressed.
Tesla planned to sell imported Tesla cars in the Indian market last year and has been lobbying the Indian government to lower tariffs on imported electric vehicles. In October last year, Tesla formally made this request to the office of Indian Prime Minister Narendra Modi.
At present, India's high-end electric car market is still in its infancy, and the country lacks charging infrastructure. Of the 2.4 million cars sold in India last year, only 5000 were electric, and only a few of them were luxury electric cars.
India imposes import duties of up to 100% on imported cars, including electric cars. Musk has previously said that India is one of the countries with the highest tariffs on imported electric vehicles. Analysts say that under this import tax rate, Tesla cars will become too expensive for many consumers, affecting the company's sales in India.
But Tesla's request for a tax cut was opposed by several Indian carmakers, saying it would hamper investment in the domestic carmaking industry.
In addition, Indian government officials are divided over Tesla's request. Some officials want the company to focus on localized production before considering any tax breaks, but Tesla said it wants to first try to import cars for sale in India and then decide whether or not to build a factory there according to demand.
Just as Tesla insisted that India cut import tariffs, German luxury carmaker Mercedes-Benz announced that it would start assembling an electric version of its flagship s-class sedan EQS in India later this year. Mercedes-Benz will also become the world's first luxury carmaker to assemble electric cars in India, and expects to start selling EQS in India in the fourth quarter of this year. I wonder if Mercedes-Benz's decisive action will affect Tesla's decision.
