Is Telsa coming soon in Indian market? EV maker “silent” on plans: Report

Regarding the new EV policy, US electric vehicle manufacturer Tesla is "silent" and has not yet informed the government of its plans for India, an official stated on Friday.

Elon Musk, the American tech tycoon, had abruptly postponed his trip to India, claiming "very heavy Tesla obligations," only two days before it was supposed to happen.

During the visit, Prime Minister Narendra Modi was scheduled to meet with Elon Musk, the CEO of the electric manufacturer Tesla.

The official said, "They (Tesla) are just silent.. the (EV) policy was always meant for everybody," when questioned if the business had informed the authorities of its intentions.

Musk on X said he was "looking forward to meeting with Prime Minister @NarendraModi in India" when he announced his trip to the country earlier in April.

During Modi's June visit to the US last year, Musk met with the latter and revealed his plans to visit India in 2024, adding that he was confident Tesla will soon make its way into the Indian market.

Expectations had been heightened by his anticipated visit that he would reveal intentions to establish a Tesla store in the nation in addition to his satellite communications company Starlink.

It was believed that Musk would reveal Tesla's intentions to establish a manufacturing facility in India, along with potential investments amounting to billions of dollars, and the timeline for delivering Tesla electric vehicles in India as soon as possible.

Apart from electric automobiles, he is aiming to enter the Indian market with his satellite internet business Starlink, for which he is awaiting regulatory permits. Tesla's Indian automobile sales are contingent upon a reduction in import levies, as Musk has repeatedly urged. 

The government recently unveiled a new policy on electric vehicles, which aims to attract major international players like Tesla by reducing import duties for businesses that establish manufacturing facilities in the country with a minimum investment of USD 500 million. A few weeks later, the company announced his intended trip to India.

The first stakeholders' meeting on the new EV policy was attended last month by an advisor representing Tesla, The Asia Group (TAG), as well as representatives from VinFast, a Vietnamese EV manufacturer, and all of the major Indian automakers, including Hyundai, Maruti Suzuki, Kia, Tata, Mahindra, Renault, Skoda Auto Volkswagen India, BMW, Mercedes-Benz and Audi.

The purpose of the stakeholder consultation gathering was to gather feedback on the new EV manufacturing policy's guidelines.

For five years beginning on the date the government issues the approval letter, businesses that establish EV passenger car manufacturing facilities will be allowed to import a limited quantity of cars at a reduced customs/import duty rate of 15% on vehicles costing USD 35,000 and above.

Customs duties on automobiles imported as fully built units (CBUs) range from 70 per cent to 100 per cent at this time, based on engine size, cost, insurance, and freight value (CIF).

CBUs with a CIF value of more than USD 40,000 are subject to a 100% import tariff (for diesel engines larger than 2500 cc and petrol engines larger than 3000 cc). Conversely, those with a CFI worth less than USD 40,000 are subject to a 70% tax (for petrol engines under 3000cc and diesel engines under 2500cc).

The goal of the new EV strategy is to draw in investment from reputable international manufacturers and market India as a location for EV manufacturing. Tesla requested tariff reductions from the Indian government last year in order to bring its cars into the country.