Tesla set to launch in India next year

KOCHI: The leading American automobile company, Tesla may commence operations in India early next year. The central government has initiated the process to expedite approvals from various departments. A meeting of top officials took place at the Prime Minister's Office yesterday to decide on investment applications from global companies including Tesla, to advance electric vehicle manufacturing in the country. With Tesla owned by Elon Musk, one of the world's wealthiest individuals, there are high expectations of a significant transformation in India's electric vehicle market.

Officials from the Ministry of Commerce and Industry as well as the Departments of Heavy Industries, Electronics and IT were also present at the meeting. During his visit to the US in June, Prime Minister Narendra Modi discussed investment opportunities in India with Elon Musk. India has extended an invitation to US President Joe Biden to be the chief guest at next year's Republic Day celebrations, and it is anticipated that Tesla's entry into India may be linked to this event.

The primary challenge for Tesla's entry into India is the substantial tax imposed by the country on imported electric vehicles. Currently, India imposes a 60 percent tax on electric vehicles which is on par with taxes on conventional, oil-based vehicles. Tesla is advocating for a reduction in the import tax on electric vehicles to 40 percent. Prior to establishing a production center in India, Tesla explored the potential by selling imported vehicles in the domestic market. Tesla is also encouraged by the significant growth in electric vehicle sales in India.