The much talked about automobile manufacturer Tesla is all set to make its debut in India. The Elon Musk owned company shall open its first showroom in Mumbai.
The showroom shall open next month in the world’s third-biggest automobile market. Reports further suggest that Tesla is facing declining sales in Europe and China.
The company is likely to open its first showroom in Mumbai, followed by Delhi, say reports. The electric vehicle giant has reportedly started importing components and spares from the US, China and the Netherlands.
The company will be allowed to export a maximum of 8,000 units annually to India against a highly reduced duty of 15 per cent. Earlier, there were reports that Tesla was interested in importing Tesla car into India and subsequently sell it through their showrooms in India.
Tesla boss Musk had in past indicated that he was interested in investing in India, but “high import duty” structures were a bone of contention. Tesla’s intension to come into India had intensified after India announced its new EV policy, under which import duty was reduced to 15 per cent and many incentives provided for setting up manufacturing plant in India.
Recent on June 2 at a press conference Union Minister for Heavy Industries HD Kumaraswamy told reporters, Elon Musk-owned electric car manufacturer Tesla is not interested in manufacturing in India, instead, they are opening showrooms.
“Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India,” the minister said.
Heavy Industry Secretary Kamran Rizvi added, “So the real intent we’ll know when we open the application and if the company still feels like investing. What minister sir is telling is about what people they come and told informally.”
The minister however added that many European companies like Hyundai, Mercedes Benz, Skoda and Kia have shown interest in manufacturing units in India under the new EV policy. The new EV policy announced in 2022, has given many concessions for companies who will invest in India and set up manufacturing units.