Tesla CEO responded to a tweet asking when the company will start selling its vehicles in India.
According to Elon Musk, with the intention to open a business in this country, Tesla still cannot solve “many problems” with the Indian government.
Elon Musk sees the main problem for selling Tesla cars in the Indian market in high taxes on imports of electric vehicles.
India’s electric vehicle import tax burden is 60% for models under $ 40,000 and 100% for electric vehicles over $ 40,000.
At the same time, as reported by BusinessToday, the Indian government has denied Musk’s statement. Sources told the Indian news agency that the Tesla executive is trying to pressure the government through social media to achieve import tax cuts without being tied to localizing production in the country. In return, the government wants Tesla to build its cars in India. The country’s transport minister told Reuters that the authorities are ready to offer Tesla incentives to do so.
The Indian electric vehicle market is still in its infancy, but the government is aiming for at least 65% of all new car sales to be generated by electric vehicles by 2030. India’s auto market, one of the largest on the planet, is expected to grow with a burgeoning middle class, opening up potentially tremendous growth opportunities for automakers.
Elon Musk later tweeted that Tesla was “likely” to build an electric vehicle plant in India, but only if the company can import finished vehicles at lower tax rates.