Tesla sees India’s 100 p.c import tariffs on automobiles making clients anxious, and the carmaker remains to be assessing when to enter the “extremely popular” market at the same time as these considerations linger, its chief monetary officer mentioned on Tuesday.
Tesla has lengthy wished to promote on the planet’s third-largest automotive market, however excessive tariffs, which its chief Elon Musk has mentioned are among the many steepest on the planet, have been a deterrent.
Even so, Tesla has in current weeks finalised some showroom area in India and posted greater than two dozen jobs, signalling it’s getting nearer to a launch. Commercially obtainable customized information present that in March, Tesla imported a Mannequin Y automotive to India from Germany at a cargo worth of $46,000 (roughly Rs. 39.2 lakh).
“The identical automotive which we’re sending is 100 p.c costlier than what it’s. In order that creates a number of anxiousness. Folks really feel OK, they’re paying an excessive amount of for the automotive … That is why we have been very cautious making an attempt to determine when is the correct time (to enter India),” Vaibhav Taneja mentioned in an earnings name.
“India is a extremely popular market,” he added.
Tesla posted dismal first quarter earnings on Tuesday, with web revenue plunging by 71 p.c.
Tesla has been lobbying India to decrease import tariffs on automobiles, and Prime Minister Narendra Modi’s officers are in talks with US President Donald Trump’s administration to decrease the 100 p.c levies beneath a bilateral commerce deal.
America has requested for elimination of tariffs on automobiles, however New Delhi is unlikely to carry down taxes to zero instantly even because it considers additional cuts.
Any responsibility cuts that make imported automobiles cheaper have seen sturdy opposition from native carmakers comparable to Tata Motors and Mahindra and Mahindra.
Musk mentioned this week he’s planning to go to India this 12 months, after Modi and the billionaire had a dialog about collaboration in know-how and innovation.
Final 12 months, Tesla got here shut, with Musk planning to go to India the place he was anticipated to announce an funding of $2 billion (roughly Rs. 17,081 crore) -$3 billion (roughly Rs. 25,621 crore), together with in a manufacturing unit to fabricate EVs. However he cancelled the journey on the final second.
© Thomson Reuters 2025
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