Tesla's India Plans Uncertain Amid Executive Inaction and Challenges
TapTechNews July 4th news, according to Bloomberg, sources disclosed that since executives of Tesla Inc. ceased contact with Indian officials, the Indian government anticipates it is unlikely that Tesla Inc. will invest in India in the near future.
Sources said that after Musk postponed his originally scheduled visit to India at the end of April, his team has not had any further communication with the New Delhi side. They stated that the Indian government understands that Tesla is currently facing financial problems and does not plan to make new investments in India in the near term.
Tesla has seen a consecutive second quarter of declining deliveries globally, while facing fierce competition in the Chinese market, which has led to the company's diminishing interest in the Indian market. Musk announced large-scale layoffs in April, and Tesla's first pickup model, the Cybertruck, which has been in development for years, has yet to achieve mass production, and the construction of a new factory in Mexico has also been postponed.
Musk originally planned to visit India in April and meet with Indian Prime Minister Narendra Modi, but he canceled the trip citing pressing issues at the company.
Just weeks after India lowered import tariffs on electric vehicles, Musk initially announced his visit plan. The new policy targets foreign automakers who commit to investing at least Rs 41.5 billion (TapTechNews note: currently about 3.615 billion yuan) in India and commencing localized production of electric vehicles within three years.
Sources said that the Indian government is currently pinning its hopes on local automakers such as Tata Motors and Mahindra & Mahindra to boost India's electric vehicle production. They added that if Musk decides to reinitiate negotiations, Tesla can still enjoy the new import tax policy.
The electric vehicle market in India is still in its infancy. According to data from BloombergNEF, last year pure electric vehicle sales accounted for only 1.3% of total vehicle sales. Due to the high upfront purchase cost of electric vehicles and the scarcity of charging stations, many buyers are hesitant to switch to electric vehicles.