Tesla’s India plans at a stalemate as Indian govt. stands firm on its decision

Tesla’s India story has come to a grinding halt, as both the manufacturer and the Indian government can’t seem to agree on where to manufacture cars.

The Indian government has once again reiterated that Tesla should set up a factory in India if it wants to sell cars here. We have previously covered this topic in detail, and if you want to get a bit of background on exactly what’s been happening, check out this earlier story here.

The most recent statement comes from Nitin Gadkari, Union Minister for Road, Transport, and Highways. Speaking at a private event in Delhi, the Minister reiterated his previous stance that Tesla should manufacture its cars in India if it wants to sell them here.

From what is known, Tesla plans to start exporting cars from its plant in China for the Indian market. However, as the anti-China sentiment in India is high, this is seen to be a massive barrier. Also, importing cars from China would not be very cost-effective, and therefore Tesla also wants a reduction in import duty. To be honest, both of these are a long shot at the moment.

While the government is looking to actively shift over to greener mobility solutions, which also include electric vehicles, it doesn’t want to bow down to the whims of Tesla (a pioneer in the field of electric vehicles), for it will set a precedent for all foreign manufacturers and would also be highly unfair to domestic players who have made massive investments in the manufacturing of EVs.

Takeaway

After having registered a company in India and having tested and homologated certain models, it doesn’t look like Tesla is coming to India any time soon. So, if you have been waiting for Tesla to come to India, we suggest you look elsewhere or directly import one from a foreign country.