Tesla to Import Vehicles Directly, Skips 'Make in India' Plans, Says Elon Musk

HIGHLIGHTS:

• The electric vehicle giant will begin operations in India by importing vehicles from its Berlin plant, bypassing local manufacturing.
• India's proposed EV policy may reduce import tariffs from 110% to 15%, benefitting companies like Tesla looking to enter the market.
• With new showrooms opening in Delhi and Mumbai, Tesla plans to disrupt the EV market in India, potentially offering vehicles priced under Rs 21 lakh.

Tesla, the world's leading electric vehicle manufacturer, is set to enter the Indian market. However, contrary to earlier expectations, the company will start by directly importing vehicles rather than setting up local manufacturing. While there were speculations about Tesla exploring sites for a production facility in India, the vehicles will initially be imported from its Berlin plant in Germany. Tesla also quickly dismissed rumors that cars would be sourced from its China facility.

There has been much discussion about how Tesla will shake up the Indian electric vehicle market. According to a recent report from the source, the company will initially follow the direct import route before exploring local manufacturing options. It will be interesting to see how the Indian government adjusts the EV import policy. Currently, the tariff stands at 110 percent, but the new proposal could reduce it to just 15 percent.

According to some sources, the vehicles that will be available at the new showrooms in Delhi and Mumbai will initially be imported from Germany.

The government mulls reducing import tariffs

The Indian government has started reducing import tariffs on U.S. products, beginning with high-end motorcycles. Customs duties on motorcycles with engine capacities up to 1,600cc have been cut from 50% to 40%, and for those over 1,600cc, from 50% to 30%. According to the Economic Times, the new electric vehicle (EV) policy could lower tariffs from 110% to 15% for EVs priced above $35,000. This change could significantly benefit Tesla, with reports suggesting the company may launch a vehicle priced under Rs 21 lakh.