This Is Why Elon Musk Is Not Launching Tesla Cars In India: Shocking Truth About Govt & Taxes

Tesla CEO Elon Musk responded to a tweet on Saturday stating that his company wants to launch cars in India, but that the country’s import levies on electric vehicles (EVs) are preventing the company from doing so.

What Is Stopping Tesla To Launch Cars In India?

Responding to Youtuber Madan Gowri’s tweet “please launch Tesla cars in India ASAP!”

Musk responded with: “Want to launch Tesla in India, but import duties are the highest in the world by far of any large country. Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India.”

Another user tweeted if Tesla would go forward with locally assembled vehicles, to which Musk responded that they are “hopeful for at least temporary tariff relief”.

Adding: “If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely.”

Tesla’s Letter To Indian Ministries

According to Reuters, Tesla has written to Indian ministries requesting a significant decrease in import tariffs on electric vehicles (EVs).

The letter stated that lowering customs would “boost demand and generate revenue for the government.”

According to the report, this is not easily achievable and would face resistance from Prime Minister Narendra Modi’s administration which has championed high import taxes for many industries in a bid to boost local manufacturing.

Tesla established a local company in India in January and has increased hiring.

According to the sources, Tesla, which plans to begin sales in India this year, suggested in a letter to ministries and the country’s leading think tank, Niti Aayog, that lowering federal taxes on fully assembled electric cars to 40% would be more suitable.