Elon Musk hints at possible delay in Tesla's India launch

While replying to a question on Twitter regarding Tesla's plans for the Indian market, Elon Musk has indicated that the launch might get delayed due to a supply shortage for high-end electric cars in the country. Musk had earlier suggested that the company might make its Indian debut with the launch of the Model 3 later in 2017. Various speculations also suggested that Tesla might unveil the Model 3 at the 2018 Auto Expo, with deliveries starting thereafter.

In a recent Tweet, Musk said that the Indian market didn't have sufficient demand to make localization of components financially viable. Interestingly, he pointed out that he has been informed about a mandatory clause that demands 30% localization in the country. However, many government officials have cleared that there is no such mandatory clause for automakers who want to sell their products in the Indian market.

The Government of India has been keen to convince Tesla to start manufacturing its cars in the country. The union minister for road transport and highways, Mr. Nitin Gadkari, has already sent out official proposals to the America-based automaker, providing the company land near ports. This will help the carmaker to set up manufacturing in India and even export India made cars to international markets. However, Tesla is yet to reply to the aforementioned proposal.