Part 5/10:
Concerns About Protectionism and Import Duties
One hurdle Tesla may need to navigate in India is protectionist trade policies. There’s substantial skepticism around India’s import duties, which can be as high as 100%. To facilitate Tesla’s entry into the market, it’s likely that Indian officials would need to offer reduced duties for imported Teslas while incentivizing the commitment to build a gigafactory in India.
Analysts have speculated that reducing import tariffs for Tesla could represent a strategic compromise, allowing both parties to benefit. However, successful negotiations must address concerns about ongoing protectionism in the Indian market, affecting Tesla's ability to generate revenue.