India is not expecting Tesla Inc to go ahead with investments in the country anytime soon after executives of Elon Musk’s electric car maker pulled out of investments in the company.
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India does not expect Tesla Inc to invest in the country in the near future after executives from Elon Musk’s electric car maker have stopped contacting the country, according to people familiar with the matter.
Musk’s team has not received any further inquiries from authorities in New Delhi after the billionaire postponed a trip to India in late April, the people said, asking not to be identified as they are not authorized to speak publicly. The government has been told it is Tesla He said the company has capital problems and has no plans for fresh investment in India in the near future.
The drop in interest in India comes as Tesla posted a second consecutive drop in quarterly deliveries globally and faces tough competition in China. Musk announced massive staff cuts in April, the EV maker’s first new model in years, the Cybertruck, is rolling out at a slow pace while construction of a new plant in Mexico has been delayed.
Representatives from India’s Ministry of Heavy Industries, which oversees the automobile sector, and the ministries of finance, commerce and industry did not respond to requests for comment. Tesla also did not respond to a request for comment.
In April, Musk had cancelled his planned visit to India, which included a meeting with Prime Minister Narendra Modi, citing immediate problems at the company.
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He announced his visit weeks after India lowered import taxes on electric vehicles from foreign carmakers who pledged to invest at least 41.5 billion rupees ($497 million) and start producing electric vehicles at local factories within three years.
Instead, the Indian government is pinning its hopes on domestic automakers such as Bye Motors Ltd. and Mahindra Tesla and Mahindra Ltd are working together to boost EV production, the people said. If Musk decides to join forces again, Tesla is welcome to take advantage of the new import tax policy, they said.
India’s EV market is still in its infancy, with battery-powered cars accounting for just 1.3% of total sales last year, according to BloombergNEF. The high upfront cost of electric cars and a lack of charging stations make many buyers hesitant to make the switch.
First Publication Date: 05 July 2024, 08:29 AM IST