Tesla Actively Trying To Enter Indian Market, Seeks Special Exemption
Tesla may be able to enter India soon after all.
A few weeks ago, we reported about what seemed to be some admitted confusion on Tesla CEO Elon Musk’s part, regarding Tesla’s upcoming entry into India. Musk said back in February that the goal for India was this summer. A Twitter follower recently asked Musk about the electric automaker’s India plans, and Musk replied with a reference to the ‘Make In India’ policy.
Maybe I’m misinformed, but I was told that 30% of parts must be locally sourced and the supply doesn’t yet exist in India to support that.
— Elon Musk (@elonmusk) May 22, 2017
The information that we obtained, along with further replies on Twitter, went on to explain that cars are excluded from India’s policy, but details were still unclear. Regardless of what the actual issue was, Musk has now confirmed that Tesla is in talks with the Indian government to move forward.
In discussions with the government of India requesting temporary relief on import penalties/restrictions until a local factory is built
— Elon Musk (@elonmusk) June 14, 2017
If Tesla is given the go ahead to build a local factory in India, there is then no stipulation stating that 30 percent of the components must be locally sourced. In the meantime, Tesla is attempting to work out a deal in which it can import its vehicles without having to pay fees.
Approximately one-sixth of the global population resides in India. Though much of the nation is still developing, it should prove as a substantial market for Tesla. A local factory, along with local stores and service centers would also provide a multitude of jobs for Indian citizens, and the deal would work to stimulate India’s economy. Since it can be seen as a win for both sides, there is significant potential for the deal to come to fruition.