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  • Voltaire Staff

Musk-owned Tesla defers setting up unit in India, ceases contact with authorities


India is not be expected Tesla production units in the country as executives of Elon Musk-led electronic vehicle maker have stopped contacting the authorities here, according to a Bloomberg report.


Musk's team has not followed up on any further inquiries with New Delhi officials, the report stated. The Billionaire has also postponed his April visit to India.

The Indian government has been informed about Tesla's financial problems and also that the EV-maker does not have plans to funnel fresh funds into the country.


The putative loss in interest in India by Tesla came after the company recorded a second consecutive fall in global deliveries this quarter and faced an increase in competition in China.


In April, Musk announced job cuts and the EV maker's first new model in years. There have been issues with the firm's much vaunted Cybertruck, while construction of its Mexico plant construction delayed.


Meanwhile, the Indian government has moved towards domestic players such as Tata Motors and Mahindra and Mahindra to boost EV production, sources said.

India's EV market is in its infancy, with battery-powered cars accounting for just 1.3 per cent of the total in 2023, according to BloombergNEF.

The small size of the EV market is a result in part on the hesitation among the buyers to make the switch due to high upfront costs for EVs and the shortage of charging stations.

Image Source: Unsplash





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