Elon Musk and Tesla Clamp the Brakes on a Golden Opportunity

Elon Musk and Tesla Clamp the Brakes on a Golden Opportunity ...

Elon Musk appears to be going into his dance routine in India.

Get Tesla Inc ReportCEO is known for fleeing a move whenever he attends the opening of a new factory, but he reportedly won''t be wearing his boogie boots in India anytime soon.

''''A Lot of Challenges''''

According to anonymous sources, the electric automobile company has put its intentions to sell automobiles in India on hold, expanded a search for showroom space, and reassigned some of its domestic team after failing to secure lower import taxes.

The company did not respond to a request for comment.

Tesla had attempted to test demand by selling EVs imported from the United States and China at lower tariffs, but government officials had pressed for the company to commit to manufacturing locally before it would reduce tariffs. This can be anywhere from 100% to 100% on imported automobiles.

Tesla had stated that in January, it was "continuing to face a lot of difficulties with the government" in terms of sales in India.

In 2021, Tesla incorporated an Indian company in Bengaluru, the capital of India''s southern Karnataka state, and stated that "the US corporation Tesla will be opening an electric vehicle manufacturing facility in Karnataka."

Nitin Gadkari, the India''s transport minister, said Tesla is still willing to construct a factory last month, but it does not want Tesla to import vehicles from China, claiming that "making in China and selling here is not a good idea."

The growing demand for Tesla''s cars elsewhere, as well as the stalemate over import taxes, prompted a shift in strategy.

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India is the fourth largest automotive market in the world and is predicted to see the highest growth in 2022, according to the Investor Service ofMoody last month.

According to EVreporter, electric vehicles increased by 168% from the previous year, yet they still make up a small portion of the overall market.

''''A Blessing for Indian Auto Industries''''

In the United Kingdom, the electric two-wheel and three-wheel segment continues to drive electric vehicle volumes.

Climate change is a factor in the country''s desire to relocate to electric vehicles. India is currently ranked 178th out of 180 countries in the European air quality index (EPI).

According to a McKinsey & Company survey, the county hopes to achieve a goal of 100 percent electrification by 2030.

The Indian electric vehicle industry is still in its thirties, and there are more than ten major players in the two-wheeler range, three-and-a-half players in electric buses, and some in automobiles.

"The real reason Tesla is going abroad before it even started any actual operations here is not owing to the heavy import charges, but owing to the government''s forced them to tie up with one of the many conglomerate monopolies here," another person said.

Another commenter called out for a Tesla presence in India, declaring, "Elon is a good bargainer - evident from a Nevada facility. It may be later, but not never. Cant be ignored."

"Tesla wants to sell its goods cheap in China and to sell it to India," a new poster said. "Nice try! There will be no selling in India unless you manufacture there, and this makes room for Indian automobile manufacturers and corporations like Toyota, Nissan, Honda, and Volkswagen. GM and Ford will have the same problems as Tesla."

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