Elon Musk, after the Twitter acquisition, seems in a mood to shake the global automotive market now. The Tesla CEO has hinted at introducing a check Tesla car in the Indian market. At the ongoing G20 summit in Indonesia, Elon Musk said that he is working on an idea of producing cheaper Tesla cars for the Indian and Indonesian markets. A report by The Telegraph suggests that Musk said that they do think that making an affordable vehicle would make a lot of sense and we should do something.
To recall, Tesla has been trying to infiltrate the Indian market for a long time. The brand opened its India subsidiary in Bengaluru to exchange words with the Indian government for the smooth entrance of the company into the market. Considering that India levies a heavy import duty on products in order to pursue the manufacturers to produce locally. On the other hand, Tesla wanted a rebate in the same because it wanted to enter the market before making any investments in the manufacturing unit. At that time, the Indian government rejected the request of the Tesla CEO.
Details regarding Tesla’s entry into India
A report suggested that Vivek Johri, Chairman of the Central Board of Indirect Taxes and Customs, mentioned whether the duties need to be organized in a different way, but still, some domestic production is happening, and a few investments have also come in with the current traffic structure. He concluded by saying that the path is clear for Tesla, and there is not much hindrance.
The tussle between Tesla and the Indian government has given other international car-producing companies the to enter the Indian market. Fisker, one of the most popular Tesla rivals, has already announced its entry into the Indian market with its first electric car in 2023. Expectations are that the Indian market will reach $15,398 billion by 2027 in value as compared to its $1,435 billion in 2021, representing a CAGR of 47.09 percent.
