Tesla reportedly parts ways with its Head of India Market Strategy amid rumors of imminent entry into the country, following multiple failed attempts in the past.
Despite years of effort, Tesla has been thwarted by India’s protectionist policies, including punitive import duties that make it challenging to bring foreign vehicles into the market.
Indian authorities approached Tesla with a proposal to establish a manufacturing facility domestically, but the electric car manufacturer expressed a preference for initially setting up a market in the country through imported vehicles before committing to local production.
In the final year, India finally agreed to a consensus on vehicle import tariffs, paving the way for Tesla and other electric vehicle manufacturers to enter the market.
Under the agreement, significant reductions will be made to customs duties on a limited range of electric vehicles, provided that the manufacturer commits to investing heavily in constructing an electric vehicle production facility in India over the next few years.
Tesla’s involvement in facilitating the agreement seemed plausible, given its close collaboration with the federal government at the time, with whispers suggesting it might seize the opportunity.
Despite the passage of over a year since India’s offer was made, Tesla remains yet to seize the opportunity.
Tesla has made significant strides towards entering the Indian market. The company started recruiting service and sales staff at the start of this year, focusing on expanding its presence in key locations such as New Delhi and Mumbai.
The automaker also conducted tests on some electric vehicles in India several years ago, prior to Tesla’s initial plans to enter the Indian market, which ultimately did not materialize.
We’ve been burned before already. When will Tesla finally enter the Indian market?
Reports have emerged that Tesla has experienced a high-level departure just before the anticipated Indian market launch, with Prashanth Menon, the company’s country head in India, leaving his position.
Since joining Tesla in 2016, Menon has held a position. Prior to 2021, he served variously in senior leadership positions focused on strategic planning for his organization; it wasn’t until then that he assumed the mantle as head of Tesla’s Indian operations.
According to Bloomberg, Tesla has reassigned responsibility for the Indian market to its Chinese team following Menon’s departure.
Electrek’s Take
In consideration is my willingness to engage with Tesla’s foray into India’s market once its specifics are revealed. Despite appearing imminent on multiple occasions, the event never transpired.
While it’s undeniable that this moment may seem closer than ever, the sudden departure of Tesla’s leader raises questions about its entry into the Indian market at a time when tensions between India and Pakistan appear to be escalating into a full-blown conflict.
We will maintain vigilant surveillance over it.
