Tesla in talks with government for possible India launch
Elon Musk's Tesla has begun talks with the government to bring its electric cars to India via the single-brand retail route. This comes months after Musk had tweeted about India's high import duties and sourcing requirements. There is widespread interest in Tesla among Indian car-buyers and PM Narendra Modi, who had visited the company's headquarters in 2015 to try bringing the company to India.
India's single-brand retail route comes with several rules, including the mandatory sourcing of up to 30% of the value of goods sold in the country. It remains unclear how Tesla intends to provide after-sales service in India and establish support infrastructure to charge the vehicles.
Tesla had originally planned to enter the Indian market over the summer. However, Musk said he faced road-blocks due to difficulties in complying with the local sourcing rules. It's worth noting that in the absence of a vendor base, the sourcing requirements can be waived for "high-technology goods," as is the case with Apple. Musk is reportedly seeking a similar waiver for Tesla.
Tesla's proposal comes as the government pushes for greater electric vehicle sales. Recently, transport minister Nitin Gadkari told auto industry lobby SIAM of having only electric cars on Indian roads by 2030. Companies such as Maruti and Ford are planning to enter the segment.
