Tesla is still undecided on when to start operations in India despite calling it a “very hot market,” with steep import duties continuing to cloud the company’s plans, CFO Vaibhav Taneja said on Tuesday.
Speaking after Tesla’s dismal Q1 results -Taneja pointed to India’s 100% import tariffs as a key hurdle. “The same car which we’re sending is 100% more expensive than what it is,” he said during the earnings call. “So that creates a lot of anxiety. People feel they’re paying too much.”
Tesla has lobbied India for years to cut its sky-high duties, with Elon Musk calling them among the steepest in the world. Despite no breakthrough yet, Tesla has recently leased showroom space and listed over two dozen job openings in India.
Shipment records also show the company imported a Model Y from Germany in March at a declared value of $46,000.
Talks are ongoing between Indian officials and the Trump administration on a broader trade deal, under which the US has requested that India eliminate import tariffs on electric vehicles.
But any sweeping reduction is likely to face pushback from domestic automakers like Tata Motors and Mahindra, who argue that easing tariffs too quickly could erode India’s local EV industry.
Tesla came close to announcing a major India entry last year, with Musk expected to unveil a $2-3 billion investment that included plans for a local factory. That trip was called off at the last minute, but following a conversation with Prime Minister Narendra Modi about tech collaboration.
,the company is battling broader headwinds, with rising competition and slowing demand denting its financials. Still, Taneja’s remarks suggest the India story is far from shelved-just stuck in neutral.