According to foreign media reports, three people familiar with the matter said that due to the failure to obtain a lower import tax, Tesla has shelved its plan to sell electric vehicles in India, abandoned its efforts to find exhibition halls and reassigned work for some local teams. This decision also means that Tesla has ended the deadlock in negotiations with representatives of the Indian government for more than a year.
Tesla seeks to test local demand by selling electric vehicles imported from the United States and China in India with lower tariffs, but the Indian government is urging Tesla to promise to produce locally before reducing tariffs. It is reported that the tariff on imported cars in India can reach 100%. People familiar with the matter said that Tesla had previously set a deadline for determining whether the lobbying was fruitful on February 1 (the day when India announced its budget and announced tax reform). People familiar with the matter added that this year, the government of Indian Prime Minister modi did not make concessions, and Tesla suspended its plan to import cars from India.
Two people familiar with the matter said that for months, Tesla has been looking for sites to open exhibition halls and service centers in New Delhi, Mumbai and Bangalore, but the plan has now been shelved. Tesla has also assigned other work to some teams in India. Manuj Khurana, an Indian policy executive at Tesla, has held another position related to "products" in San Francisco since March. People familiar with the matter said that the strong demand for Tesla cars in other regions and the deadlock between the Indian government and Tesla on the issue of import tax prompted Tesla to change its strategy.
Tesla hopes to gain an early advantage in India, a small but growing electric vehicle market. At present, the Indian market is dominated by Tata Motors. Tesla's lowest price is $40000, which will enable it to enter the Indian luxury car market. India's annual car sales are about 3 million, and luxury car sales account for only a small part.
Tesla did not respond to a request for comment, and an Indian government spokesman did not immediately respond to a request for comment.