EconomyMarkets

Tesla’s Musk says ‘working through challenges’ with India government By Reuters

© Reuters. FILE PHOTO: The logo of car manufacturer Tesla is seen at a dealership in London, Britain, May 14, 2021. REUTERS/Matthew Childs/File Photo

By Aditi Shah

NEW DELHI (Reuters) – Tesla (NASDAQ:) Inc is “still working through a lot of challenges with the government” in India, its billionaire chief executive Elon Musk said on Twitter (NYSE:) on Thursday, responding to a question on when it would launch its electric cars in the country.

Tesla had plans to begin selling imported cars in India last year and has been lobbying the government to slash import taxes on electric vehicles (EVs) before it enters the market. In October, it took its demands to Indian Prime Minister Narendra Modi’s office.

Musk didn’t identify the “challenges” being worked on in his Twitter post.

The Indian market for premium EVs is still in its infancy and charging infrastructure is scarce. Just 5,000 of the 2.4 million cars sold in India last year were electric, of which a handful were luxury models.

India levies an import duty of as high as 100% on imported cars, including EVs, which Musk has previously said are among the highest in the world. Analysts have said that at these rates Tesla cars would become too costly for many buyers, crimping sales.

Tesla’s demands for tax cuts – first reported by Reuters in July – have prompted objections from several local players, who say such a move would deter investment in domestic manufacturing.

Indian government officials are also divided over the U.S. automaker’s demands. Some officials want the company to commit to local manufacturing before considering any tax breaks, but Tesla has indicated it first wants to experiment with imports.

Even as Tesla is holding out for a cut in import duties, luxury carmaker Mercedes-Benz will start assembling the electric version of its flagship S-Class sedan, the EQS, in India later this year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button