With Tesla Inc. facing multiple hurdles to officially being its sales operation in India, the Indian Government is having an equivalent interest to bring the brand to the Indian homeland. Recently, Tesla had requested the government to cut down import duties for Tesla, and this plea was duly rejected because of the violation of the aim of the 'Make In India' campaign. To make situations favourable for Tesla Inc., the Indian Government has proposed a special plan for Tesla India, which includes an investment-based strategy. Here are all the details about the proposed plan for Tesla to start operations in India.
The Indian Government expects Tesla Inc. to source at least USD 500 million worth of automotive parts from India in order to cut down the taxes for import on its vehicles. This amount would be presented as an investment threshold for the brand to kickstart its sales operations in the country. Tesla Inc. can initially operate at a lower level of localisation and then ramp up with a rate of at least 10% to 15% a year to achieve the desired investment in India. However, Tesla, in August 2021, claimed that they are ready for localised sourcing of parts for around USD 100 million in automotive parts. Pitching five times the capacity of the organisation with a partial investment plan can prove to be feasible for the government as well as the enterprise proving it to be a win-win situation.
The Indian Government has presented its keen interest to bring electric mobility into the country and develop electric vehicle charging infrastructure at a much higher pace; however, they would like to stick to their approach of make in India and won't prefer an imported car as this would raise the costs manifold and decrease the affordability factor a being a Tesla. India is still a developing market for electric mobility dominated by vehicles operated on internal combustion engines and electric vehicles not fetching more than 1% of the annual sales.
The Government of India, therefore, requires Tesla Inc. to present a localised component sourcing plan which promises decent sales in the future, and it should export the vehicles with the made in India tag. While Tesla Inc. is facing difficulties keeping up with these policies, plenty of state governments in India are highly interested in having Tesla in their states and promise a hassle-free process.
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So, what do you think about this investment based plan for Tesla in India? Would you like to own a Tesla EV once the sales operations begin? Do Tesla electric vehicles require any special features before entering the Indian Markets? Share your views in the comment section. Let's get into a discussion with this in our 91Wheels Telegram and 91Wheels Whatsapp group, where you can know more about vehicles, conduct discussions on your favourite ride, and much more! You can also subscribe to our Youtube channel for our exclusive video content on the latest from the world of cars and motorcycles. Also, connect with us on Facebook, Instagram, and Twitter for more about vehicles!
