Tesla is a flag-bearer in the electric vehicle industry. The automaker is gradually marking its presence in various countries. However, India is not going to see Tesla debut anytime soon. Recently, an Indian Twitterati inquired Elon Musk about Tesla’s entry in the country. Elon said that import duties are high in India. So, this will make Tesla car in India unaffordable for people. You can see the exchange of Tweet below.
I’m told import duties are extremely high (up to 100%), even for electric cars. This would make our cars unaffordable.
— E (@elonmusk) August 1, 2019
A consumer has to pay 100 % import duty on any imported four-wheeler costing above 27 lakhs INR. Even if a vehicle is less than 27 lakhs, the import duty will be 60 percent. Either way, the total amount for the car will be pretty high. Again when we talk about a luxury brand like Tesla, the overall cost will be on a higher side. It may be affordable for niche consumers but not the common public.
Also, the infrastructure for electric vehicle charging is not up to the mark in India. Recently, on this basis German automobile giant Volkswagen denied the viability of eco-friendly cars in India. First, the country needs to step up its game in setting up a multitude of charging stations across various regions.
The import duty and overall cost of the Tesla car in India can come down if a local assembly unit is set up. However, this is not easy to carry out.
Recently, the Indian government cut the GST rate on electric vehicles. It is also encouraging people to shift to the sustainable mode of transportation. So, many notable automakers are getting ready to butt heads in the EV market of India. Even if Tesla enters the market it will face tough competition from local and other international automakers. Only time will decide the fate of Tesla in India.
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