Tesla Inc. Chief Executive Officer (CEO) Elon Musk’s desire to enter the Indian market since 2019 is still running in place because it is hampered by government regulations in the country with the largest population.
“Still working through a lot of challenges with the government,” Musk said in a Twitter post on Thursday morning in Asia. He answered a question someone asked about Tesla’s planned launch in the South Asian country.
Musk and the administration of Indian Prime Minister Narendra Modi have been in talks for years. However, refusal from local factories and state import duties of 100 percent have led to a stalemate.
The government has asked the US electric vehicle (EV) manufacturer to increase local production and share detailed manufacturing plans. Musk has asked for lower taxes so Tesla can sell imported vehicles at a lower price in this price-sensitive market.
In October, India’s minister had asked Tesla not to sell Chinese cars in his country and urged manufacturers to produce, sell and export vehicles from local factories.
With a population similar to China, India is indeed a promising market for the EV sector. Currently, the market in India is still dominated by cheap cars made by local units of Suzuki Motor Corp and Hyundai Motor Co.
Tesla will also face competition from foreign players such as Mercedes-Benz which has just announced the local assembly of the EQS, the electric version of the S-Class sedan in India in the fourth quarter of 2022.