Tesla still weighing India entry, says CFO Vaibhav Taneja
Speaking during Tesla’s earnings call, Taneja explained that India’s 100% import duty on vehicles is a major concern, as it doubles the cost of a car and makes customers hesitant.
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Tesla’s Chief Financial Officer Vaibhav Taneja has said the company is still working out the right time to enter the Indian market, mainly due to the country’s steep import taxes.
Speaking during Tesla’s earnings call, Taneja explained that India’s 100% import duty on vehicles is a major concern, as it doubles the cost of a car and makes customers hesitant. “The same car we’re sending becomes 100 per cent more expensive. That creates anxiety—people feel they’re paying far too much. That’s why we’re being very careful in figuring out when the right time is to enter,” Taneja said, as quoted by Reuters.
The update comes just days after Tesla CEO Elon Musk confirmed he will visit India later this year. The company is gearing up to launch its electric vehicles in the country, having recently leased its first showroom space in Mumbai’s Bandra Kurla Complex. Tesla has also advertised over 20 job roles in India and, according to customs records, has shipped Model Y units from Germany at a declared value of $46,000 per vehicle.
These developments come amid ongoing efforts by India and the United States to reduce trade barriers, including talks around import duties and broader economic cooperation.
Meanwhile, Tesla is facing financial pressure. The company reported a sharp 71% drop in net profit year-on-year, earning $409 million for the January–March quarter. Revenue also slipped 9% to $19.34 billion, as the company deals with increased competition and slowing EV demand in key markets.
