Recently, Elon Musk hinted on Twitter that the plans to launch Tesla cars in India may be delayed because of sourcing conditions of the country while he replied to a follower who enquired about the launch of Tesla in India. In response to that, the Government of India clarified that the policy does not mandate any company and that he has been misinformed.
A tweet by Tesla chief, Elon Musk, to announce a new algorithm of Tesla’s autonomous driving feature ended up helping the serial entrepreneur get some information that will help his company’s India business strategy. Musk said that the launch of Tesla may be delayed because India’s ‘Make in India’ policies state that 30% of parts must be locally sourced. This came as a shock to many who were anticipated about Tesla coming to India given the Musk’s reply in February 2017 to a similar question – “Hoping for summer this year”.
@TheAvinashSingh Maybe I’m misinformed, but I was told that 30% of parts must be locally sourced and the supply doesn’t yet exist in India to support that.
— Elon Musk (@elonmusk) May 22, 2017
To clarify Musk’s doubts and misinformation, Government of India’s through its ‘Make in India’ Twitter handle stated that India’s policy does not mandate any company when it comes to manufacturing and took the pitch to invite Tesla to India. Currently, many companies, mostly premium auto makers such as Ferrari, Porshe and Lamborghini, sell their products in India through various retail channels. The law states that any fully built unit of automobile that is imported to India and costs more than $40,000 is mandated to pay 100% customs duty; the duty is 60% for vehicles that cost less than $40,000.
— Make in India (@makeinindia) May 23, 2017
Last year Tesla had made its Model 3 available for pre booking in India with a vision to enter the market in 2017 or 2018. Musk has not responded to the GOI’s tweet yet but it is expected that Tesla retains its plans of introduction in India. It will be really amazing to have Teslas in India, nothing is confirmed yet but we should expect these electric cars soon.