Whatever happened to Tesla coming to India? A complete timeline of yay and nay
- Does Tesla need India or does India need Tesla? Both, however, appear to be uninterested in one another.
If you have been saving money for a Tesla electric car in India, don't. Despite hurried developments over past several years that pointed to a possible Tesla debut in the country, not much has come to fruition. And while India remains the world's third-largest vehicle market in terms of sales, Elon Musk has taken one step forward and two steps back time and again over plans of a possible India entry.
Musk, Tesla CEO and the wealthiest person in the world, has previously hailed the charge of the Indian economy and even called himself a ‘fan’ of Prime Minister Narendra Modi. He has even met PM Modi on several occasions in the United States. But he has never actually come to India. Earlier this year, the strongest speculation about Tesla entering the country came when Musk confirmed he would visit India in April. He would bail out due to ‘heavy Tesla obligations.’ And with the cancellation, another episode of Tesla-India tryst came to a pause. Pause but perhaps not a hard halt.
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Here is looking back at Tesla-India timeline and how a possible bonhomie is shaping up:
2019: First signs of a Tesla debut in India
It was a hopeful time. Tesla had just opened its first factory outside of the US, in Shanghai. Demand for EVs was booming and no one had a clue about a pandemic lurking in the shadows. Musk was typically active on Twitter although a few years away from buying it entirely. When a netizen asked him if he would visit India, his response was prompt. “Would love to be there this year. If not, definitely next." It immediately triggered anticipation of Tesla cars also eventually landing here. Neither did.
2020: Of deferred hope
In October of the year, Musk was once again asked on Twitter about the progress of Tesla's plans for India. “Yea, next year for sure." In December, Union Minister Nitin Gadkari said at an event that Tesla will begin its India operations in 2021 and will begin its innings by first importing EVs and eventually setting up a manufacturing plant here.
2021: Driving ahead in reverse gear
There was optimism amid the pandemic gloom. Tesla had zeroed-in on a space in Mumbai's Lower Parel area for its first office in the country and there were plans of having a retail store here as well. The EV maker also confirmed it would target cities like Delhi and Bengaluru as part of its initial India push. Again, neither happened.
The rest of the year saw Tesla heavily lobbying the Indian government for lower import duty on EVs. The main request - lower federal taxes on entirely-assembled cars to 40 per cent for models costing $40,000 or less. The company even said that a factory here is possible but will be based on the success of its imported models first. But at the time, Indian government officials ruled out any possibility of reducing taxes.
In December of the year, Tesla received approval to launch as many as seven EVs in India although no timeline was given and nor was the tax matter resolved either way.
2022: See-saw ride continues
Indian states began wooing Musk in a bid to ensure that the first-ever Tesla plant in India finds the ‘right’ address. Ministers in the government of Telangana, Maharashtra and West Bengal were at the forefront of this. Musk, however, said Tesla is 'still working through a lot of challenges with the government'.'
The Indian government also maintained its position that Tesla should import partially-built units and assemble these in India in order to reduce cost, instead of asking for import duty cuts.
2023: Tesla's India plans move into top gear
Several senior Tesla officials landed in India and met with PM Modi and numerous senior central government officials. The major point of discussions were to identify local sources for components. The company also highlighted that its planned facility in the country would be used to export EVs to markets elsewhere in Asia. As such, work on the facility was assumed to begin shortly.
What further fuelled speculation is that in August of the year, Tesla India Motor & Energy Pvt Ltd leased an office space in Pune's Panchshil Business Park for five years.
The year also saw PM Modi meeting Musk twice, both interactions happening in the US. Musk would once again express his interest in investing in India.
2024: Get set, don't go
The start of the year was all about Musk touching down in India. The developments were as quick as these were significant. By March, the central government announced it would update its EV policy allowing for duty concessions for companies that commit to making a minimum investment of $500 million here. While the move was seen as a concession to Tesla in particular, the Americans appeared unimpressed. Musk would even drop plans of his India visit although he never explained why apart from ‘Tesla commitments.’
Also Read : 'India not ready to make EV policy changes to benefit any specific company'
As such, while India's EV movement has gone from strength to strength, it has done so minus Tesla, one of world's largest EV players.
Check out Upcoming EV Cars in India, Upcoming EV Bikes in India.
