Daybreak Why Tesla's wheels aren't turning in India (yet)
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Jun 2, 2025 Tesla's ambitious plans for India have hit a significant roadblock despite interest from the government and potential buyers. The drastic cut in import duties wasn't sufficient to overcome challenges related to local suppliers and market standards. As the company gears up for a launch that never seems to arrive, frustration is mounting with cancellations and leadership changes in India. The discussion sheds light on the misalignment between Tesla’s expectations and the realities of the local automotive market.
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Beyond Taxes: Tesla's India Challenges
- Tesla's India entry is hindered by factors beyond just import taxes, including supply chain and timing challenges.
- Despite policy tweaks and showrooms prepping, Tesla cars remain absent from Indian roads years after bookings began.
Tesla's Supply Chain Challenges
- Tesla demands a complete, high-standard local supply ecosystem for manufacturing.
- India's EV supply chain isn't ready, needing years to reach Tesla's required scale and standards.
Mismatch in Indian Market Taste
- Tesla's signature premium sedans misalign with Indian EV preferences, favoring SUVs and crossovers.
- Early Model 3 bookings in India have seen cancellations after long waits, reflecting market disconnect.