Tesla has been planning to invest in India for the past several years. But the news from Tesla that it is not expected to invest in India anytime soon raises the eyes on what is going on. Also a report reveals that Elon Musk’s team is ghosting Indian officials about the project.
The tussle between the Indian side and Tesla is because India’s protectionist efforts include high import duties on imported vehicles. The Indian government wanted Tesla to build a factory in the country, whereas Tesla is preferring to start its journey in India with establishing a market in the country through imported vehicles before joining the manufacturing facility.
As reported, In this lineup the Indian government has finally come up with a compromising plan on its import duties on cars. That helps Tesla and other EV automakers to launch its electric cars in the vast market of India.
This deal involves a great reduction in the import duties for a limited number of electric vehicles as long as the automaker makes a significant investment with a commitment to build an electric vehicle factory in Future in the country.
It is likely that Tesla had a hand in making that deal happen considering the automaker was working closely with the government. Also there were indications that Tesla was going to take them up on the deal.
After this deal CEO Elon Musk also planned to visit India as soon as the deal was announced, to close a deal for Tesla to launch in the market and build a factory there. However he canceled his trip at the last moment.
Recently, a Bloomberg report stated that Indian officials do not expect Tesla to take them up on the new program and invest in the country anytime as the official of Musk’s team has reportedly stopped communication with them.
Musk’s team hasn’t made any further inquiries with officials in New Delhi after the billionaire postponed a visit to India in late April, the people said, asking not to be identified because they’re not authorized to speak publicly. The government is given to understand that Tesla has capital issues and doesn’t plan on pledging fresh investment into India in the near future, they said.
-Report
It was also confirmed as the automaker has declining in deliveries from the consecutive two quarters of year-over-year.
