Elon Musk meets with Indian Prime Minister Narendra Modi in Blair House in Washington DC, USA, on February 13, 2025.
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Tesla He is sailing cautiously through an entrance to India, said CFO Vaibhav Taneja on Tuesday in the United States, since the electric vehicle manufacturer faces a fall in sales and tariff threats.
Speaking in a profit call, Taneja confirmed reports that the company is working on an expansion to India, and added that it would be a great market to enter, thanks to its “great middle class.”
However, never, India is also “a very hard market”, with imports from EV to the country subject to a 70% rate and about 30% luxury taxes, he said, and pointed out that this could make India-allala be double expensive, he said.
“That is why we are very careful trying to find out when the right time is … these children of things a little tension, which we are trying to exercise,” he added.
India has pointed out interest in Tesla establishes a basis in the country, although the country’s protectionist policies present some obstacles to the EV manufacturer.
Taneja’s statements occur a few days after Tesla CEO, Elon Musk, spoke with India Prime Minister Narendra Modi, on topics, including collaboration in technology and innovation.
Modi also with the duration of Musk his visit to Washington, DC, in February, feeding speculation about Tesla’s plans for India. That same month, the sources told CNBC-TV18 that the company was considering importing EV from its Berlin plant to the country from April.
On the part of India, the government has proposed a new policy that could see that EV tariffs fall from approximately 70% to 15% for companies that plan to locate some manufacturing in the country.
Even so, experts have told CNBC that Tesla would face price pressures under the scheme, and the company must probably press more policy reforms.
However, the new tariffs of US President Donald Trump taught in US commercial partners, including India, could throw a cloud on possible negotiations between Tesla and Nueva Delhi.
Washington has imposed additional or 10% tariffs on India, but the thesis could increase by 26% if a 90 -day pause on Trump’s “reciprocal rates” ends without India’s trade agreement.
Vice President JD Vance with Modi in India on Monday, hosting “significant” progress made in commercial conversations between the two countries.
Tesla reported disappointing results of the first quarter on Tuesday, including a fall year after year in automotive income and a 71% drop in net income.