Photo: Justin Sullivan
Tesla has changed its approach to development in India, possibly because the government is unwilling to compromise with the manufacturer to achieve mutually beneficial terms of cooperation. The company has moved its local team to work in the Asia-Pacific region and other divisions around the world.
The Tesla India team has begun working in the larger Asia-Pacific (APAC) market, the Economic Times reported. The transfer of employees to other divisions around the world is associated with the fact that the manufacturer and the Indian government have not yet been able to reach a compromise that would ensure a quick entry into the country's market. Tesla made great efforts and showed a willingness to cooperate, while the government of the country did not make any concessions in order to draw in the manufacturer. In addition, India stated that it is against selling cars made at Giga Shanghai in the country.
The import duty on electric vehicles in India is 100% if the CIF value (Cost Insurance and Freight) is over $40,000 and 60% if the CIF value is less than $40,000. Tesla has lobbied the government to cut rates for all electric vehicles, but has never been successful.
Union Road and Highways Minister Nitin Gadkari said last week that if Tesla builds its electric vehicles in India, the company will also benefit. However, Tesla has previously made it clear that it cannot start production in the country until it has studied the market, but high duties prevent this.
The Economic Times, citing an anonymous source, said that most of the Tesla team members went to Dubai and mainly work in the markets of the Middle East. LinkedIn profiles of some Indian team employees of Tesla also confirm that they work for other divisions of the manufacturer.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.