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Introduction
United States-based Tesla is working through a
lot of challenges with the government to
launch its products in India.The electric car
major had requested the government to
standardise the tariff on electric cars to 40%,
irrespective of the customs value, and
withdraw the social welfare surcharge of 10%
on such vehicles.Indian government officials
want the company to commit to local
manufacturing before considering any tax
breaks, but Tesla has indicated it first wants to
experiment with imports.
Government Intervention
Tesla's Plan Ease of Doing Business Ranking
Tesla's plan to enter the Indian market has Amongst the chosen 190 countries, India ranked
been put on hold since 2019 due to high import 63rd in doing Business according to a survey
taxes on electric vehicles.
conducted by World Bank Report.
Unavailability of enough EV
stations Unsuitable Roads
There are around 4,000 cities in india. There Indian market is not well prepared for
are 605 EV charging stations in India spread autonomous vehicles due to the soft
across 78 cities. Of these, Jammu and traffic rules and the unsuitable road
Kashmir has the least with 1 charging infrastructure.
stations. So, There are locational restrictions
on the use of automatic cars due to
unavailability of enough EV charging stations
PRICING
High Price
As we know, government policies impose a 100%
import duty on importing vehicles costing more
than 32 lakh rupees, which makes Tesla cars
costing 60-70 lakh rupees in India. Pricing in comparison to non-EVs
As India is a price sensitive market, most people
are not ready to pay extra for electric vehicles. For
example Tata Nexon starts at 7.70 lakhs and the
Tata Nexon EV starts at 14.49 lakhs, considering
Trends in Indian Market almost double the price, the high gap will definitely
There are many car buyers in the Indian market, cuts edge for non-ev vehicles.
but at the same time, most people can invest only
7 to 8 lakhs. This makes an average of Rs.7.7 lakhs
that Indians spent to buy a car.
CONCLUSION