Tesla’s entry into the Indian market fails

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Manuj Khurana, a key executive in charge of local lobbying, has resigned after Tesla shelved plans to sell electric vehicles in India for weeks, two people familiar with the matter said today. Khurana joined Tesla in March 2021 as head of policy and business development for India. Over the past year, he has played a key role in shaping Tesla’s plans to enter the Indian market.

For example, he has lobbied the Indian government to slash the import tax on electric vehicles from 100% to 40%. Tesla said the move would allow it to test the market by importing products from production centers such as China before investing in a factory in India.

But the Indian government insists that Tesla must first commit to building the car locally before it can make any concessions. With talks stalled, reports last month that Tesla had shelved plans to sell electric vehicles in India, forgoing a local showroom search and reassigning team members after failing to secure lower import tax breaks .

A person familiar with the matter said today: “Currently, Tesla’s plan to enter the Indian market has almost failed.” At present, the development of electric vehicles in India is relatively backward, the government’s support for green energy technology is minimal, and there are few charging stations. Of the 2.4 million vehicles sold in India in 2020, EVs accounted for just 5,000. In addition to imperfect charging infrastructure, the high cost of electric vehicles is also deterring buyers.

Tesla CEO Elon Musk said on Twitter last month that Tesla would not have a manufacturing plant there “for any location that doesn’t allow cars to be sold and serviced in the first place.”

At the same time, Tesla will also focus on other markets in Southeast Asia, such as nickel-rich Indonesia. There, Tesla is considering potential battery-related investments. In Thailand, Tesla recently registered a subsidiary to sell cars.

Source: Sina.com

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