Elon Musk cites THIS reason behind the delay in Tesla’s India launch

New Delhi: Elon Musk has opened up regarding the delay in the launch of Tesla cars in India. Responding to a tweet asking Musk to launch Tesla cars in India soon, the billionaire said that high import rates are making it difficult for the carmaker to enter the Indian automobile market. 

“Want to launch Tesla in India, but import duties are the highest in the world by far of any large country. ,” Musk tweeted. The entrepreneur also pointed out that India is treating clean energy vehicles similar to diesel or petrol vehicles. 

“Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India,” said in response to a tweet by Youtuber Madan Gowri. Gowri had urged Musk to “please launch Tesla cars in India ASAP!” 

Another Twitter user was quick to ask Musk if Tesla is planning to start assembling its car locally in India. He replied that Tesla is “hopeful for at least temporary tariff relief. If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely.”

Musk’s comments have just come a day after several media publications reported that Tesla is currently lobbying to reduce the import duties on electric vehicles (EVs) set by the Indian government. 

Tesla’s letter to government agencies suggested that reducing import duties on electric vehicles could possibly increase the demand for EVs while generating revenue for the government.
Tesla has reportedly asked Niti Aayog and other engaging ministries to consider lowering import taxes for electric vehicles by 40%. At present, imported vehicles worth less than $40,000 attract a 60% import tax while cars worth more than $40,000 are fined a 100% import tax. 

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