The world’s most successful electric vehicle manufacturer, Tesla, is preparing to make its debut in the Indian market. Contrary to popular belief, however, the Elon Musk-led company will enter India via direct imports rather than local manufacturing. While there have been reports about Tesla scouting locations for a potential manufacturing plant, the vehicles will initially be imported from Tesla’s Berlin plant in Germany. Despite rumours suggesting that the company might source vehicles from its China plant, Tesla swiftly clarified that this would not be the case.
There’s been a lot of talk about how Tesla will disrupt the Indian electric vehicle market. According to the latest report from Money Control, the company will initially take the direct import route and then consider local manufacturing options. It will be interesting to see how the Indian Government tweaks the import policy for EVs. Currently, the tariffs are 110 per cent, but with the new proposal, it could be slashed to mere 15 per cent.
Based on the Money Control report, initially the vehicles that will hit the upcoming new showrooms in Delhi and Mumbai will arrive from Germany.
Government considering import traffic cut
The Indian government has been taking steps to reduce import tariffs on U.S. products, starting with high-end motorcycles. For motorcycles with engine capacities up to 1,600cc, tariffs have been cut from 50 per cent to 40 per cent, and for those over 1,600cc, customs duties have been reduced from 50% to 30%. According to the Economic Times, the proposed new policy for electric vehicles (EVs) is set to lower tariffs from 110 per cent to 15 per cent for EVs priced above $35,000. This move could be a game-changer for Tesla, with reports indicating the company is considering launching a vehicle priced under Rs 21 lakh.