Rama Krishna Sangem
Elon Musk’s Tesla is not coming to India as expected til now. Initially he was supposed to come to New Delhi before Lok Sabha elections and meet PM Modi, to discuss the launch of Tesla in the country. But, he put off the visit in the last minute, saying he would come after a new government in elected after the elections. But, now indications say that he may not come to India this year. So, Tesla’s plans to make their cars in India are dropped as of now.
India doesn’t expect Tesla Inc. to move forward with an investment in the country any time soon after executives at Elon Musk’s electric carmaker stopped contacting them, according to people familiar with the matter.
Musk’s team hasn’t made any further inquiries with officials in New Delhi after the billionaire postponed a visit to India in late April, the people said, asking not to be identified because they’re not authorised to speak publicly. The government is given to understand that Tesla has capital issues and doesn’t plan on pledging fresh investment into India in the near future, they said.
This is Tesla’s internal problem
The loss of interest in India comes as Tesla reported a second consecutive drop in quarterly deliveries globally and faces heightened competition in China. Musk announced major staff reductions in April, the EV maker’s first new model in years, the Cybertruck, has been slow to ramp up while construction of a new plant in Mexico has been delayed.
Representatives from India’s Ministry of Heavy Industries, which oversees the automobile sector, and the ministries of finance, and commerce and industry, didn’t respond to requests for comment. Tesla also didn’t respond to a request for comment.
Musk in April scrapped a planned visit to India that would have included a meeting with Prime Minister Narendra Modi, citing pressing issues at the company.
He had originally announced his visit just weeks after India lowered the import taxes on EVs from foreign carmakers that pledge to invest at least 41.5 billion rupees ($497 million) and start EV production from a local factory within three years.
Instead, India’s government is pinning its hopes on domestic automakers like Tata Motors Ltd. and Mahindra & Mahindra Ltd. to boost EV production, the people said. Should Musk decide to re-engage, Tesla would still be welcome to avail itself of the new import tax policy, they added.
Some business leaders including Bhavish Agarwal of Ola are of the view that not coming to India is Tesla’s loss, not that of India, which is a huge potential market for Musk’s EV cars.
