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Tesla Model S (1)
The current government has set an ambitious target for electric vehicles sales by 2030. But what is stopping Tesla Inc. from setting up a factory on Indian soil?

The Indian Government has been trying to woo Tesla to set up a factory here, but CEO Elon Musk has claimed that India is not ready yet. Tesla have recently moved a step closer to establishing a plant in China, making it their first production facility outside of America, as China have eased their rules for auto-makers like Tesla. India has a restrictive policy environment which has proved itself to be a giant hurdle for local production.

“Would love to be in India,” Musk stated on social media. He further added, “Some challenging government regulations, unfortunately,”. He also stated that Tesla would enter India as soon as CFO Deepak Ahuja, believes they are ready.

India, which is Asia’s third largest economy has not been a top-pick for foreign investors, despite the Indian government, and Prime Minister Narendra Modi at the helm, claiming that “more than 1,400 archaic laws that were an obstacle to doing business have been abolished”. Musk also stated that Tesla was in discussion with the government, requesting a temporary waiver of import penalties and other restrictions until a local factory is built.
Tesla facing challenges to entering India

India’s tax structure, which has kept Tesla and other manufacturers away, is changing rapidly to allow the growth of environmentally-friendly vehicles. The government had set a target that every vehicle sold would be electric-powered by 2030, which was deemed too ambitious by the manufacturers present in the country. The government had stated that they would replace all their petrol- and diesel-powered official vehicles with electric vehicles as well. The first roll-out of 10,000 vehicles has suffered a set-back by a year, due to poor infrastructure development and lack of charging ports. The first roll-out of vehicles will begin by March 2019.

The demand for Tesla vehicles has been growing across the world, and the manufacturer have captured the attention of the public, with their all-electric product portfolio. We are looking forward to the American manufacturer eventually making its way to our shores and electrifying us with their products.

Story: Sahej Patheja


About the author: Online Car India



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