Tesla (TSLA) is reportedly revisiting its plans to enter the Indian automotive market, a goal it has struggled to achieve in the past few years due to high import duties and regulatory hurdles. India remains the largest auto market where Tesla has not yet established a presence, according to Reuters.
After multiple failed attempts to enter the market, Tesla is now in early-stage talks with real estate group DLF to secure a showroom location in New Delhi, sources with direct knowledge of the situation told Reuters. The talks, however, are still in their initial phases, and it remains unclear whether they will lead to a final agreement.
Teslaâs efforts to enter India have long been complicated by the countryâs protectionist policies, which impose steep import duties on vehicles. The Indian government had previously urged Tesla to set up a local manufacturing plant as a condition for reducing import duties. Tesla, on the other hand, initially sought to test the market with imported vehicles before making a significant investment in local production.
Earlier this year, the Indian government introduced a compromise that allows for reduced import duties on a limited number of electric vehicles. The deal permits automakers to import up to 40,000 electric vehicles annually with a 15% duty, provided they commit to investing approximately $500 million into local EV manufacturing within five years.
While the deal appeared to open a pathway for Tesla, CEO Elon Musk canceled a planned visit to India and instead visited China, causing some speculation about the automaker’s future in the market. However, with discussions reportedly resuming, Tesla may finally be on track to enter the Indian market under the newly revised terms.
For now, the ongoing negotiations with DLF for a showroom in New Delhi signify that Teslaâs interest in India is reigniting, but the company has yet to confirm a final plan.
Source: Reuters
