However, in his recent tweet, Elon Musk has not told about the current ‘challenges’.
Still working through a lot of challenges with the government
— Elon Musk (@elonmusk) January 12, 2022
The Indian market for premium EVs is still in its nascent stage and the charging infrastructure in the country is yet to be developed. Of the 2.4 million cars sold in India last year, only 5,000 were electric. Some of these were luxury models.
In India, import duty of up to 100% is levied on all imported cars, including electric vehicles. Elon Musk has already said that it is the highest in the world. Analysts have said that this will make Tesla cars too expensive for Indian buyers and will reduce car sales.
The demand for tax cuts was first reported by Reuters in July. However, this demand of Tesla has been opposed by many auto makers of India. He says that this will affect investment in domestic manufacturing.
Indian government officials are also divided over the demands of the American automaker Tesla. Some executives want the company to promise local manufacturing, but Tesla has indicated that it wants to test the Indian market with imported cars first.
Meanwhile, luxury car maker Mercedes-Benz will start assembling the electric version of its flagship S-Class sedan, the EQS, in India later this year. India is expected to emerge as a major market for electric vehicles in the next few years.