Tesla's tryst with India began in 2019 when Elon Musk evinced interest in selling his electric cars in the country. Two years down the line, we aren't any closer to getting the first vehicle from this global EV pioneer. What's more, it looks like India may wait for a long time before getting behind the wheels of one.
In a banter with an Indian twitter user recently, Elon Musk said the company was still working through challenges with the government. And, Musk didn't divulge more for obvious reasons. The company had faced flak for asking to lower duties so that it could get China-made cars for the Indian roads.
Given that business with China is a touchy topic in Indian political circles, considering the fragile political relations between the two neighbours, the government refused to acquiesce to Tesla's request, instead asking the U.S.-electric vehicle pioneer to set up a manufacturing base in India.
Yo @elonmusk any further update as to when Tesla's will launch in India? They're pretty awesome and deserve to be in every corner of the world! pic.twitter.com/J7fU1HMklEJanuary 12, 2022
The journey through 2020
From Elon Musk's point of view, further delays in entering the Indian market is going to create an uneven playing field. Domestic companies like Tata Motors, with plans to launch 10 cars in 10 years and Korean Hyundai Motors, with its existing base of customers, could get a head start in the affordable EV passenger car segment.
From Tesla's point of view, things haven't really moved in any specific direction as the company kept dilly-dallying with its plans. In September of 2020, we heard that the company was in talks to set up a research facility in India. A couple of states even sent out feelers for a hassle-free set-up in their regions.
As we drew close to the year-end, a federal Indian minister released a statement claiming that Tesla had shared plans to start operations by early 2021. Of course, we thought this was just a means to fulfil the orders that Tesla had on its book since 2016, when it actually began actively soliciting Indian customers.
And 2021 was no different either
The new year of 2021 dawned with even better news. Tesla was reported looking for charging stations in two of India's largest cities - Mumbai and Delhi. A day later, we heard that the company would begin operations, though it turned out a false alarm as Tesla had just registered an Indian subsidiary with the federal authorities.
It was at this point in time that the question of imports versus local manufacture got into the discussion table. While Tesla sought a deep discount on India's 100% import duty on automobiles, the federal Indian administration tossed the ball back to Musk, asking him to shift some of his production out of China to India.
Not that it was unheard of. Apple had shifted a good chunk of its iPhone production out of China to Indian shores amidst early signs of the pandemic. Today their latest iPhone 13 series is manufactured out of a facility near Chennai.
We believe this is the that's delaying Musk's decision to roll out a few Tesla cars on Indian roads. From his point of view, Musk might want to test Indian markets with a few imported vehicles before considering a manufacturing base. A position that may not work for India's political leaders at this juncture, given that a vehicle with a Made in China brand is anathema.
The last we heard was in September of 2021 when four Tesla cars got a mandatory nod from a government department to roll out in India. There were also reports that Tesla was seeking showroom space in Mumbai, Delhi and Bangalore.
- Best electric scooters you can buy in India right now
- Amazon Great Republic Day Sale: Discounts on phones
Want to know about the latest happenings in tech? Follow TechRadar India on Twitter, Facebook and Instagram
