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Tesla could postpone Model 3 India launch

Tesla could postpone Model 3 India launch
CarTrade Editorial Team CarTrade Editorial Team Thursday 25 May 2017, 18:24 PM

Tesla, the American electric car maker, might delay the launch of its latest car, Model 3, in India. This development was discovered through Elon Musk’s tweet.

                                                      

                                                                                Tesla could postpone Model 3 India launch 

The CEO of Tesla was asked by a Twitter user about the official launch of Tesla cars in India. He went on to say “Maybe I'm misinformed, but I was told that 30% of parts must be locally sourced and the supply doesn't yet exist in India to support that”. Elon Musk is talking about India’s FDI policy, where a single brand retailer needs to source 30 per cent components from within the country. Tesla sells its cars directly to the customers and not through any dealers and this classifies it as a single brand retailer.

Due to this, Tesla won’t be able sell its cars in India unless it appoints dealers and sell it through them. If this happens, the company has the option of selling Model 3 as completely-built-up (CBU) units. But it is highly unlikely for the company to ditch its traditional sales approach for a country, which doesn’t really have an infrastructure ready for EVs.

 

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