Elon Musk meets Indian Prime Minister Narendra Modi on February 13, 2025 at Washington DC’s Blair House.
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Tesla Vigilance is entering India, CFO Vaibhav Taneja said in the US on Tuesday, as electric vehicle manufacturer has to face sales and tariff hazards.
Speaking on an earning call, Taneja confirmed the reports that the company was working on an expansion in India, saying that it would be a great market to enter, thanks to its “large middle class”.
Nevertheless, India is also a “a very difficult market”, under 70% tariffs with EV imports in the country and about 30% luxury tax, he said, seeing that it could be expensive twice of India-Sainik Tesla, he said.
He said, “This is why we are trying to know when the right time is … such things create some stress, which we are trying to work outside,” he said.
India has indicated interest in establishing a base in the country in Tesla, although the country’s conservationist policies offer some obstacles to the EV manufacturer.
Tesla CEO Elon Musk made Taneja statements a few days after talking on the topics including Technology and Innovation with Prime Minister Narendra Modi.
Modi met Musk in February during his visit to Washington, DC, which speculated about Tesla’s plans for India. The same month, sources told CNBC-TV18 that the company was considering importing EVS from its Berlin plant from its Berlin plant in early April.
On behalf of India, the government has proposed a new policy, which may fall from about 70% to 15% for firms planned to make EV tariffs local in the country.
Nevertheless, experts have told the CNBC that Tesla will face price pressure under the scheme, the company is likely to emphasize for policy reforms.
However, US President Donald Trump’s new tariff is placed on American business partners including India, which can put a cloud on possible dialogues between Tesla and New Delhi.
Washington has imposed a 10% tariff on India, but if the 90-day stop at Trump’s “mutual tariff” ends without a US-India trade deal, these may increase by 26%.
Vice President JD Vance met Modi in India on Monday, made “significant” progress in trade talks between the two countries.
Tesla on Tuesday described the first quarter results as disappointing, including a decline of 20% year-by-year in motor vehicle revenue and a 71% decline in net income.
