High import duties along with the exodus of executives will be a game changer in Tesla’s destiny in India.

Due to the uncertainty in India's EV plan, the executive level officers continue to leave Tesla India Inc. As reported to ET, Three in the 12- members of India Tesla team have left the company since country policy head Manuj Khurana quit in June. Recently, Legal head Nitika Chhabra, Sales executive Ankit Kesharwani, and Head of Charging Nishant left the company.

As per the report by ET, this continued exodus implies the waning interest of the Indian market towards Electric vehicles and Tesla. Cited to ET, people aware of this matter said “Currently, the company’s India unit is in its skeletal form,”. Tesla who tweeted in the past that he aspires to sell Tesla cars first in India before establishing a manufacturing plant in the country, that is why Tesla is striving hard to lobby the Indian government to reduce import duties for Electric Vehicle (EVs). As per the Ministry of Corporate Affairs Ministry (MAC), In June Tesla elevated HR Head Chithra Thomas as additional director of India Tesla. 

“Tesla may look at importing cars in the future and selling it but currently the India entry plan looks stalled,” said an individual aware of this matter to ET. The company was widely expected to sell its most affordable car, Model 3, In India but high import duties would put the car in the luxury category. India levies 60 percent import duty on EVs prices at $40, 000 and levies 100 percent duty on EVs prices more than $40,000. The Indian government has been bullish on India’s transition to EVs, provided they are made in the country. It has given several incentives, including the Rs. 10,000-crore FAME II (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India) subsidy scheme, for adoption of electric vehicles.

For Tesla itself India will be a huge market to capture, but the uncertainty of vision and high import duties will affect the Tesla outlined plan.