Vaibhav Taneja, CFO of Tesla, has announced that the company is planning to expand into the Indian market due to its high potential. However, they are facing high import taxes, particularly on EVs, with a 70% import tax and an additional 30% luxury goods tax in India. This could potentially double the price of Tesla vehicles.
The Indian government has proposed reducing the tax to 15% if car manufacturers are willing to invest in building factories in the country. Tesla, on the other hand, may try to negotiate for better terms after Elon Musk recently met with Prime Minister Narendra Modi to discuss technological collaboration.
Nevertheless, the ongoing trade negotiations between the United States and India, as well as the new import taxes set by the US, may complicate Tesla’s market expansion plans. Particularly, the first quarter results saw a 20% decrease in revenue from cars compared to the previous year, with a 71% decrease in net income.
Source: CNBC
TLDR: Tesla is looking to enter the Indian market despite facing high import taxes, with negotiations ongoing to potentially lower the tax rate for the company.
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