According to reports on Thursday, Tesla's investment plan in India may have been stalled.
After Tesla CEO Musk postponed his visit to India in late April, Tesla executives have stopped contacting Indian government officials. The Indian government believes that Tesla is currently under financial pressure and is unable to invest new funds in India in the short term.
Previously, Tesla's global delivery volume has declined for two consecutive quarters, and it faces intensified competition in the Chinese market. In April of this year, Tesla announced large-scale layoffs. The company's first new model, Cybertruck, has slow production capacity, and the construction of the new factory in Mexico has been postponed.
The Indian government has previously adjusted policies to attract foreign electric vehicle manufacturers. Earlier this year, India lowered import tariffs for foreign electric vehicle companies that promised to invest at least 41.5 billion rupees (approximately $497 million) and begin local production within three years. Musk originally planned to visit India and meet with Prime Minister Modi during this opportunity, but he eventually cancelled the trip due to urgent company affairs and has not visited India since.
Faced with the uncertainty of Tesla's investment plan, the Indian government is now placing its hopes on local auto manufacturers such as Tata Motors and Mahindra to promote the development of the domestic electric vehicle industry. According to media reports, the Indian government has stated that if Musk decides to reconsider investment, India still welcomes Tesla's entry.
The electric vehicle market in India is still in its infancy stage. Last year, electric cars accounted for only 1.3% of total car sales in India. The high initial costs and lack of charging stations are still the main factors hindering consumers from choosing electric cars.
The stagnation of Tesla's investment plan highlights the challenges facing the development of India's electric vehicle market. Although the government has introduced a series of incentive policies, market cultivation still takes time. The future development of India's electric vehicle industry may rely more on the efforts of local enterprises and the sustained support of the government.