Tesla, the US electric carmaker, remains non-communicative regarding its plans for the Indian market under the country's new electric vehicle (EV) policy, a government official revealed on Friday. The company's silence follows the postponement of CEO Elon Musk's planned visit to India, originally set for April 21-22, due to what Musk described as "very heavy Tesla obligations."
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Musk's visit was highly anticipated as he was expected to meet with Prime Minister Narendra Modi to discuss potential investments and the establishment of a manufacturing unit in India. Despite confirming his visit on social media and expressing eagerness to meet Modi, Musk had to defer the trip at the last moment
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An official, when queried about Tesla's engagement with the new policy, stated, "They (Tesla) are just silent... the (EV) policy was always meant for everybody." This response underscores the absence of communication from Tesla despite significant policy incentives introduced by the Indian government.
The new EV policy, aimed at attracting global EV manufacturers like Tesla, offers import duty concessions to companies that set up manufacturing units in India with a minimum investment of USD 500 million. The policy is designed to position India as a key player in the global EV market.
In June of the previous year, Musk met Modi during the Prime Minister's US visit, where he expressed confidence that Tesla would soon enter the Indian market. This encounter fueled speculation about Tesla's imminent plans to establish a foothold in India.
Musk's proposed visit was expected to herald announcements concerning not only Tesla's manufacturing intentions but also his satellite internet venture, Starlink, which is still awaiting regulatory approval in India.
Last month, a representative from The Asia Group (TAG), an advisory firm for Tesla, attended the first stakeholder meeting on the new EV policy. This meeting included representatives from major global and Indian automotive manufacturers, highlighting the competitive landscape Tesla would be entering.
The new policy allows companies setting up EV manufacturing facilities to import a limited number of cars at a reduced customs duty of 15 percent on vehicles costing USD 35,000 and above, for a period of five years. Currently, completely built units (CBUs) imported into India attract customs duties ranging from 70 percent to 100 percent, depending on various factors.
Despite the conducive policy environment, Tesla has previously called for further reductions in import duties to make its cars more affordable in the Indian market. As of now, Tesla has not responded to an email query regarding its India plans.
The Indian government remains hopeful that the new EV policy will attract substantial investments from reputed global manufacturers, reinforcing India's position as a significant EV manufacturing hub.