Tesla is hoping that the Indian government will lower the taxes they have to pay to import vehicles. They want to test the market and see if they can make a good profit. However, even if the Indian government decided not to lower these import duties, Tesla would still feel good about entering the Indian market.
Tesla’s desired import tax
Ideally, Tesla would like to pay an import duty of around 40% on cars priced under $40,000. The current rate that Tesla would be expected to pay is 60% on cars below $40,000. If the import duties stay as-is, then Tesla would have to pay a 100% duty on cars priced over $40,000.
Most of Tesla’s models cost more than $40,000 especially once all the options are added on to the car. That is why it is critical that these import duties are lowered,
This is an opportunity to boost EV sales in India
India only sold 5,000 EVs total last year. In order to get that number up substantially, India should give Tesla an opportunity to sell as many cars as possible. This would benefit Tesla because they would then have a larger customer base in India. Tesla needs to get customers and turn them into repeat customers. If Tesla's operation is able to get off the ground quickly, it would benefit India’s economy.
India did have one condition and the condition is that Tesla needs to build its cars in India if they want to receive production incentives. Luckily, it seems that Tesla has plans for a factory in India.
Tesla adds Hindi to language options for user interface
The fact Tesla added Hindi as an option on the infotainment system could be a sign that its official launch into India is on the horizon. This will make it easier for customers in India to use the car. Granted, many people in India are bilingual but this was still a good move for Tesla. The bottom line is that it's a good idea that Tesla has a vast amount of language options to choose from.
Daniel Cappo reports Tesla developments at Torque News. He has had a passion for cars ever since age five when his grandparents let him drive their old golf cart around their property in Upstate NY. He has attended numerous auto shows, and even got the chance to drive a Ferrari California on the track. Ever since Tesla opened up a dealership at his local mall, he's been an avid follower of their cars and technology. Dan has a B.S. in Public Communication from U Vermont. Follow Daniel on Twitter and LinkedIn for daily Tesla News.