Tesla CEO Elon Musk Says 'Working Through Challenges' With India Government When Asked About Launch

Musk didn't detail the "challenges" being worked on in his tweet.

Advertisement
By Reuters | Updated: 13 January 2022 12:15 IST
Highlights
  • Tesla is holding out for a cut in import duties
  • The Indian market for premium EVs is still in its infancy
  • Indian government officials are divided over the US automaker's demands

Tesla's demands for tax cuts have prompted objections from several local players

Tesla is "still working through a lot of challenges with the government" in India, its billionaire chief executive Elon Musk said on Twitter on Thursday, responding to a question on when it would launch its electric cars in the country.

Tesla had plans to begin selling imported cars in India last year and has been lobbying the government to slash import taxes on electric vehicles (EVs) before it enters the market. In October, it took its demands to Indian Prime Minister Narendra Modi's office.

Advertisement

Musk didn't identify the "challenges" being worked on in his Twitter post.

The Indian market for premium EVs is still in its infancy and charging infrastructure is scarce. Just 5,000 of the 2.4 million cars sold in India last year were electric, of which a handful were luxury models.

Advertisement

India levies an import duty of as high as 100 percent on imported cars, including EVs, which Musk has previously said are among the highest in the world. Analysts have said that at these rates Tesla cars would become too costly for many buyers, crimping sales.

Tesla's demands for tax cuts - first reported by Reuters in July - have prompted objections from several local players, who say such a move would deter investment in domestic manufacturing.

Advertisement

Indian government officials are also divided over the US automaker's demands. Some officials want the company to commit to local manufacturing before considering any tax breaks, but Tesla has indicated it first wants to experiment with imports.

Even as Tesla is holding out for a cut in import duties, luxury carmaker Mercedes-Benz will start assembling the electric version of its flagship S-Class sedan, the EQS, in India later this year.

Advertisement

© Thomson Reuters 2022


Xiaomi India speaks exclusively to Orbital, the Gadgets 360 podcast, on their plans for 2022 and pushing for 120W fast charging with the 11i HyperCharge. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Tesla, Elon Musk, Tesla India
Advertisement

Related Stories

Popular Mobile Brands
  1. HMD Touch AI Reportedly Unveiled With AI Tools, 3.2-Inch Touchscreen
  2. iPhone 18 Pro Max Price Leak Hints at Apple's Costliest Non-Folding iPhone
  3. WhatsApp Introduces Redesigned Message Bubbles for iOS: Report
  4. Moto Pad 70 Set to Launch on This Date in India
  5. Google's Gemini Spark AI Agent Gets Its Biggest Expansion Yet
  6. Bitcoin Slips as Middle East Tensions Offset Strong ETF Demand
  7. OnePlus N6x Confirmed to Launch in India With This Battery
  1. Anthropic Expands Claude Voice Mode With Opus, Sonnet AI Models
  2. Samsung Galaxy F70 Pro Appears on Geekbench Ahead of Anticipated Launch
  3. Crypto Hacks Hit AFX and Verus Protocol Within Hours, Draining $31.6 Million
  4. OnePlus N6x Battery Capacity Revealed Week Before Launch in India
  5. Memory and Storage Chip Prices Tipped to Crash Next Year, But the Shortage Could Last Longer
  6. Moto Pad 70 India Launch Date Announced; Teased to Feature Dimensity 6400 SoC, 10,200mAh Battery
  7. HMD Touch AI Reportedly Launched in China With Doubao AI, 3.2-Inch Touchscreen
  8. Exynos 2700 Leak Suggests Samsung is Planning a Big Performance Upgrade
  9. Google Chrome Could Make Notification Prompts Less Annoying on Android
  10. Bitcoin Slips Below $66,000 as Middle East Tensions Pressure Crypto Market
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.