Why do Indians don’t need Tesla Cars? – Strategy of Elon Musk

Why do Indians don't need Tesla Cars? - Strategy of Elon Musk

What is happening with Elon Musk and India’s State Govt?

Do Indians have the capacity to buy a Tesla car?

Why is Tesla not launching in India?

The Central govt is asking for more tax for the tesla cars. The Tamilnadu Govt Minister has tweeted asking Tesla to launch in Tamilnadu. Many states in India are calling Elon Musk to come to their states. 

The Showrooms and employees of Tesla are ready in India. 

Why has Tesla still not launched in India?

Is it due to high taxes?

What is the real politics behind this issue?

Let's discuss this in detail. 

The World has praised Tesla Electric Cars for its innovation. Tesla cars have Automatic mode, Software Update, all kinds of entertainment are available in the cars. It is one of the Luxury Cars. Tesla cars are well recognized in UK, America and China. 

Indians wanted to buy the Tesla Cars.

When will Tesla cars be launched in India?

Many Indians have asked Elon Musk. Elon Musk has replied that he wishes to launch the cars in India. But he says that the tax rate in India is high and this is the reason why Tesla is holding its release in India. 

The Tesla Cars have 4 to 5 Models. Tesla Model X, 3, Y, S. There is a model which in under development. In 2020 the Indian govt has approved the Four Models. In Bengaluru, the work for a Tesla Showroom is completed. Delhi will be the HQ of Tesla India. 

Politicians to Celebrities and Normal people are asking about the Launch of Tesla cars in India. Elon Musk replies to Indian consumers that when the Indian Govt reduces the Taxes he will launch the Cars in India. 

What is the Tax rate of the Indian govt for Tesla Cars?

For Importing any product a tax must be paid to the Indian govt. For Ex: If a car rate is rs30 Lakhs. Nearly 60% of the amount should be paid as import duty. If the Product is above 30 Lakhs it will be a 100% Tax rate. 

Now the Tesla cars are in Indian rupees the normal models cost nearly 35 Lakhs. Tesla has to pay 100% as import duty. So the rate is 30 Lakhs and with the Import duty, the Car cost will be Rs 60 Lakhs. 

Elon Musk asks a question,

How will Indians buy Tesla Cars?

Elon Musk said that the Indian govt is the reason tesla has not launched in India. We will think that Elon Musk many Indians to own a Tesla car and the Indian govt is the reason Tesla is still launched in India. 

After reading the Indian govt explanation and if you notice carefully. You will understand who is the Fraudster. 

The Indian govt calls Tesla to come to India and Manufacture and assemble cars. After production in India Tesla can sell it in India and even allow Tesla to export the cars to other countries. Indian govt says that it will give benefits if Tesla comes for Production in India. 

But Elon Musk says that he will import the Full car from other countries. He says that he needs a platform to sell. He is indirectly saying to sell to only Rich people. He says that he doesnt care about the Middle Class and Poor People. 

How does this affect Middle-class people?

A Car company having a production unit in India is very hard. There are many issues to be addressed like Politics, Land and Environment. If there are more Industries more jobs will be available to Indians. 

So after the company follow the norms of the govt and setup a Production plant. It will have to employ many people. Many employees, directly and indirectly, will be working in the factory. 

Now Elon Musk is saying that he will bring the car and sell it and he needs to reduce the tax rate. Rich people, money will go to Elon Musk. If the tax rate goes down then the Rich people can buy cars easily. Elon Musk target is the Rich people in India. There are a lot of rich people in India. 

The Rich people don't know where to spend their money. So they will easily buy all models of Tesla Cars. This will profit Elon Musk. 

What will the Indian govt get?

Many states are ready to welcome Tesla Cars Manufacturing Unit to India. After Tesla starts its Manufacturing unit using the PLI Scheme. PLI is Production Linked Scheme. So The Indian govt gives this scheme and incentives with it if the Companies start their unit in India. This scheme is in India’s budget. 

In The PLI Scheme India has allotted nearly 40000 to 50000 Crore rupees. So if a company starts the unit the Indian govt will provide incentives that will be deducted from the PLI Scheme. India wants tesla to use the PLI scheme. 

To start a Car manufacturing Unit the Company has to invest an initial amount of rs2000 Crore. Three Wheeler companies will have to invest 1000 Crore rupees. For two-wheelers, it is 500 Crore rupees. So India will receive an investment and manufacturing unit. Jobs will be made available for Indians. So the Car company will have to manufacture each and every part of the car in India. 

If Tesla opens a manufacturing unit. Then it has to employ nearly 7.5 Lakh people. Elon Musk is indirectly saying that he will not employ the 7.5 Lakh Indians. But he wants to directly bring the Tesla Cars and wants to use the Indian market. Indians should raise this question to Elon Musk. 

What are the responses for Car companies which are in India?

Companies like Maruthi or Mahindra. These companies say that if the Indian govt reduces the Taxes for Tesla it has to apply to all cars companies. These Car companies are already are in the PLI scheme. They have their manufacturing units in India. This is the reason many Cities have grown and jobs are available. 

Many Indians are employed by these Car Companies. 

Elon Musk says that he will not start a manufacturing unit in India. He already has a unit in China. He is asking for Cars to be sold which are produced in China. 

Now the question is,

Do Indians need Tesla Cars?

There is another Scheme called FAME2(Faster Adoption and Manufacturing of Hybrid vehicles in India). The Indian govt has given many incentives for cars Companies to start an Electric Car manufacturing unit. The Indian govt is giving Incentives and Reduced tax. The Indian govt wants its people to be employed. 

FAME2 Scheme is accepted by Hyundai, Mahindra, Maruti, and many companies are earning profits in India. 

Due to the Corona pandemic, the sector is greatly affected in the Automobile Sector. To help the Automobile Sector Indian govt is allotting more money in the PLI and FAME 2 Schemes. The Indian govt wants these companies to come to India and Invest which will result in employment for Indians. 

What do you think about Tesla Now?

If the Indian govt is doing the right thing. Then Please Support the Indian govt. 

Maybe your comments will reach Elon Musk. 

Elon musk wants to test run the Indian market with no benefits to Indians. 

Let's discuss more Elon Musk 5G Projects and Starlink Projects. 

Does India need Tesla?

Please Comment.

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