Tesla in India, Trump in America: Elon Musk has been trying for a long time to bring his Tesla car to India. For this he has talked about many concessions from the government. Meanwhile, Tata Motors and Mahindra & Mahindra are doing new wonders every day in the electric passenger vehicle segment in India. Both the companies seem ready to welcome Tesla, so now is Elon Musk going to get support from the change of power in America i.e. the return of Donald Trump?
The closeness between America’s elected President Donald Trump and Elon Musk can be gauged from the fact that Elon Musk has been made the head of the newly formed ‘Department of Government Efficiency’ (DOGE). This is such a big responsibility that Elon Musk can directly interfere in America’s policy making.
Not only this, Donald Trump has also announced to bring a new tariff system to support American business during his rule. During his previous regime, he had raised the issue of high tax on many other American goods including Harley Davidson in India. In such a situation, due to good relations with Prime Minister Narendra Modi, he can talk about some more concessions to ensure Tesla’s entry in India.
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Tata-Mahindra changed the game in India
Here Tata and Mahindra have completely changed the game of India’s electric car segment. Models like Tiago, Tigor, Nexon, Curve and Punch in Tata’s portfolio are also available in electric versions. Whereas the company is going to make a big entry in this segment with Tata Sierra.
On the other hand, Mahindra & Mahindra has launched cars like XEV 9e and BE 6e. Both these cars have advanced level ADAS system, which provides facilities from drive control to auto parking. Not only this, the company has also upgraded its ADAS according to Indian conditions.
For example, ADAS of these vehicles not only controls the speed when a human comes in front, but also senses the coming of an animal like cow or dog on the road and applies automatic speed control and brakes. In this way it goes one step ahead of Tesla. On top of that, the price of these cars is Rs 21.90 lakh for XEV 9e and Rs 18.90 lakh for BE 6e, which can be a big challenge for Tesla.
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Tesla needs these concessions
Initially, for Tesla’s entry in India, Elon Musk had asked for permission to import his cars into India as Complete Built Unit (CBU) for some time and to test the market by selling them in the Indian market. For this, he wanted the government to give import tax concession to Tesla, because in India, CBU vehicles are taxed up to 100 percent.
Whereas on his demand, the Indian government had to say that Elon Musk should set up a Tesla factory in India and take advantage of the exemption given under the PLI scheme of the government. After this, Tesla’s coming to India was put on hold. Then after some time, the Indian government changed its EV policy and reduced the import duty for foreign electric car companies.
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After this, Elon Musk planned to come to India and also planned to meet PM Narendra Modi. But his plan got canceled at the last moment. After this, there is currently no major update regarding Tesla coming to India.