Musk’s strategies for Tesla in India are paused
Date
7/17/2024 6:53:06 AM
(MENAFN) Elon Musk's Tesla has temporarily halted its plans for expansion in India, as reported by Bloomberg. According to sources, Tesla executives have ceased communications with New Delhi following Musk's cancellation of a scheduled visit. The visit was intended for Musk to meet Indian Prime Minister Narendra Modi and announce significant investments in the world's most populous nation.
The Indian government is reportedly aware of Tesla's financial challenges and does not anticipate any new investments from the company at this time. This development comes in light of Tesla experiencing a second consecutive quarterly decline in vehicle deliveries. In the three months ending in June, the company delivered 443,956 vehicles globally, reflecting a 4.7percent decrease compared to the same period last year.
Prime Minister Modi had previously met Musk during his visit to the United States last year, urging him to invest in the Indian market. At that time, Musk expressed optimism, stating that Tesla would enter India "as soon as humanly possible," despite voicing concerns over high tariff rates in the country.
In an effort to attract foreign electric vehicle (EV) manufacturers, New Delhi recently approved a new policy that offers import duty concessions to companies willing to establish manufacturing units with a minimum investment of USD500 million. Under the previous tariff structure, imported vehicles valued over USD40,000 were subject to a 100percent customs tax, while those under USD40,000 faced a 70percent import duty.
Following this policy update, reports indicated that a Tesla team was actively scouting locations in India for a potential manufacturing plant, ideally situated near a port. Musk had also announced plans to visit India in April, with expectations that he would unveil the entry plans for two other companies he leads, Starlink and SpaceX.
However, with the recent decision to put expansion plans on hold, the future of Tesla's presence in India remains uncertain, leaving many questions about the company's strategy in this crucial market.
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