Elon Musk’s electric vehicle (EV) company, Tesla, has maintained a conspicuous silence regarding its plans to enter the Indian market, according to a government official. Despite the recent unveiling of a new EV policy by the Indian government, aimed at attracting global players like Tesla, the company has yet to communicate its intentions to the authorities.
According to media reports, an official expressed concern over Tesla’s lack of communication stating, “They (Tesla) are just silent. The (EV) policy was always meant for everybody.” The official further emphasised that it is typically the companies who announce their commercial decisions.
Musk, the CEO of the American EV giant, was initially scheduled to visit India on April 21-22, but the visit was postponed at the last minute due to what Musk cited as “very heavy Tesla obligations.” The anticipated visit had fueled speculation about a potential announcement regarding Tesla’s entry into the Indian market, as Musk was also slated to meet Prime Minister Narendra Modi during his stay.
In a previous interaction on X (formerly Twitter), Musk had confirmed his plans to visit India, expressing his eagerness to meet with Prime Minister Modi. This visit was expected to be a follow-up to their meeting in June last year, where Musk had expressed confidence in Tesla’s imminent entry into the Indian market.
Musk’s planned visit to India was anticipated to unveil significant investments potentially amounting to billions of dollars, as well as plans for establishing a manufacturing unit in the country. Additionally, he was expected to outline Tesla’s strategy for selling its electric cars in India as soon as possible.
The tech billionaire had previously called for a reduction in import duties in India to facilitate the sale of Tesla cars in the country. His concerns seemed to have been addressed by the new EV policy introduced by the Indian government.
The policy, designed to attract global EV manufacturers like Tesla, offers import duty concessions to companies setting up manufacturing units in the country with a minimum investment of USD 500 million. Under the policy, companies establishing manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at a lower customs/import duty of 15 per cent on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government.
Despite these incentives, Tesla’s silence on its India plans has left the government officials perplexed. As the Indian market continues to gain traction in the EV sector, the arrival of a prominent player like Tesla could significantly boost the country’s efforts toward sustainable mobility.