Tesla Keen On 'Hot-Market' India But 100% Tariff Creates 'A Lot Of Anxiety'

Tesla Inc. said it's working on entering "hot-market" India, but the prospect of 100% tariff on car imports creates "a lot of anxiety".

"I mean, we have been working on getting into India. India is a very hot market," Travis Axelrod, head of investor relations at the American electric carmaker, said during an earnings call on Tuesday. "...but the current tariff structure within India is that any car which we send in is subject to 70% tariff. Also, like a 30% luxury tax on it."

"So, that creates a lot of, anxiety. It's like, people feel they are paying too much for the car. And by the way, we're not getting the money. The local government is getting the money.

"And that's why we have been very careful trying to figure out when is the right time...We are working on it."

The comments come against the backdrop of Tesla's impending entry into India, amid a tariff war sparked by US President Donald Trump.

The world's highest valued carmaker has identified at least two locations to open its first stores in India, one each in Mumbai and Delhi. Additionally, Tesla has listed at least 30 jobs for India, including three in the supply chain. Two of its cars are already homologated in India and were spotted testing on the Mumbai-Pune expressway.

Separately, at least three central government ministries—heavy industries, finance and industry and commerce—are hard at work, hammering out the modalities of the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India'. The final draft is with the prime minister's office now. First introduced nearly a year ago to no takers, India's EV policy is seen as the pathway for Tesla Inc.'s entry into India. The biggest hurdle, of course, is tariffs.