Tesla has said that India’s very high car import taxes—up to 100%—are making customers feel uneasy. The company’s Chief Financial Officer, Vaibhav Taneja, mentioned that people are worried because they end up paying double the price for a car compared to other countries.
Tesla has been thinking about entering the Indian market for a long time, but these heavy taxes have made it difficult. Even though India is the world’s third-largest car market and very attractive for global companies, Tesla is still being cautious about when to launch here.
Recently, Tesla took some big steps forward:
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They finalized space for showrooms in India
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They posted more than 20 job openings
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In March, they even imported a Model Y from Germany worth $46,000 (about ₹39.2 lakh)
Taneja explained during an earnings call that while India is a promising market, pricing remains a big issue because of the taxes. "People feel they’re overpaying for the same car," he said. "So, we’re being careful about the right time to enter."
Tesla’s profits dropped by 71% in the first quarter, but the company is still pushing for change. Elon Musk has been asking India to reduce car import taxes. Indian and U.S. officials are in talks about this as part of a trade agreement, but it’s unlikely that India will completely remove these taxes anytime soon.
Indian carmakers like Tata Motors and Mahindra have opposed reducing these duties because they fear competition from foreign brands.
Also Read: Tesla Cybertruck in India? Real Deal or Just a Hype!
Elon Musk said he plans to visit India this year after speaking with Prime Minister Modi about working together on technology and innovation. Last year, Musk almost came to India and was expected to announce a $2–3 billion investment, including setting up a factory, but the trip was canceled at the last minute.
