Volkswagen has teamed up with Tesla in support of slashing import duties in India, the major barrier between automakers selling their vehicles in the market due to the high rates the country’s government has equipped to boost local manufacturing.
For the last few months, Tesla has made more progress toward entering India with its vehicles, hoping to increase sales in the fifth-largest automotive market globally. In 2021, Tesla has made more progress with the India entrance than ever before, receiving business licenses, registering itself as an entity with the ability to sell vehicles, and establishing a team of company executives to oversee the entire operation. It seemed that Tesla would finally enter the market, bringing clean and sustainable all-electric powertrains to the oil-savvy nation of India.
However, import taxes are a big hold up in the process currently. Cars with a price tag of $40,000 or less have a 60% import tax applied to them, while anything more than that number has a 100% duty, effectively doubling the price of the car. Tesla attempted to lobby with India’s government officials to reduce the import duties. Still, numerous members of the Parliament have declined to work with the automaker, as local manufacturing takes priority. Some government officials are concerned that it could take momentum away from domestic carmakers and auto parts suppliers. The deal must benefit India’s local entities.
This led to a bottleneck in Tesla’s potential entrance, as CEO Elon Musk stated he was unwilling to establish a manufacturing plant in India without testing demand. Demand would be measured through imports, and if sales figures in India were hefty enough that a production facility would be justified, Musk said that Tesla would build an assembly facility in the country. However, Tesla had pushback from politicians who said that individual companies could not receive incentives, but Tesla pushed for all EV makers to qualify for the reductions. Earlier this week, India’s officials announced there were talks to reduce duties to encourage non-domestic manufacturers to sell their products in the country.
Now, Volkswagen AG is getting involved and is pushing for lower import duties in India as well. The company is proposing reductions to as little as 25% for import duties, stating that the reduction would not pose a “big threat” to domestic companies but would still make imported vehicles more expensive than local options.
“The market for EVs has to be big enough for investments to come in, and for that, we shouldn’t be placing barriers,” Managing Director of Skoda Auto Volkswagen India Gurpratap Boparai said to Reuters.
Volkswagen AG has several electric vehicles out across its different brands, including Audi, and of course, its own VW brand with the ID.3, ID.4, and other models that are soon entering production. However, it is aiming for only its Volkswagen and Skoda brands to enter the market. This will not occur unless there is movement on import duties.
Attempts to decrease the duties have resulted in other manufacturers like Mercedes-Benz and Hyundai voicing support for the proposed cuts. However, local companies, like Tata Motors, are not encouraged by the proposals. Once again, the argument is local manufacturing should be prioritized. Boparai disagrees.
“I’m not at all saying that local manufacturing should not be encouraged … but duty of 60% and 100% is prohibitively high at this juncture,” he added.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Elon Musk
Tesla Full Self-Driving’s European launch frustrations revealed by Elon Musk
Tesla plans to launch Full Self-Driving in Europe later this year, but regulatory bodies are proving to make it a bigger challenge than it needs to be.
Tesla Full Self-Driving is set to launch in Europe in the future, but the region’s governing bodies are not giving the suite any chance to move forward, according to CEO Elon Musk, who blames the regulatory processes for robbing citizens of a safer mode of travel.
The automaker revealed late last year that it planned to bring Full Self-Driving to Europe sometime in 2025. However, Musk said that the launch of the suite is being continuously prolonged by both individual and European Union officials, dragging their feet with approvals.
In a post on X on Wednesday, Musk said the company is still dealing with and waiting for approvals from both the Dutch government and the EU’s governing officials, giving an indication that some progress has been made, but ultimately, there are still some bodies that are taking their time:
Waiting for Dutch authorities and then the EU to approve.
Very frustrating and hurts the safety of people in Europe, as driving with advanced Autopilot on results in four times fewer injuries!
Please ask your governing authorities to accelerate making Tesla safer in Europe. https://t.co/QIYCXhhaQp
— Elon Musk (@elonmusk) June 11, 2025
He continued by stating that the delays are “very frustrating” and they “hurt the safety of people in Europe” because of Autopilot’s statistical prowess, which shows it is much safer than human drivers.
Tesla is readying for the launch of a completely driverless Robotaxi platform in the U.S., which is set to occur in the coming days. While the initial rollout of the platform will be reserved for a select few, public rides are slated for June 22, meaning anyone will be able to come to Austin and hail a Tesla Robotaxi through the company’s smartphone app.
The first Robotaxi without a driver was spotted in Austin yesterday and shared on X:
First Tesla driverless robotaxi spotted in the wild in Austin, TX
Musk dropped several hints that the Robotaxi launch, which has been rumored for June 12, is imminent. For now, the operation will take place in Austin and will eventually expand, likely to California next, as noted in past reports. The City’s official website confirmed that Tesla gained a license as an Autonomous Vehicle operator in the City of Austin earlier this week.
Tesla applied for a similar license in California earlier this year.
Energy
Tesla Lathrop Megafactory celebrates massive Megapack battery milestone
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments.
The Tesla Lathrop Megafactory recently achieved a new milestone. As per the official Tesla Megapack account on X, the Lathrop Megafactory has produced its 15,000th Megapack 2 XL battery.
15,000 Megapack Batteries
Tesla celebrated the milestone with a photo of the Lathrop Megafactory team posing with a freshly produced Megapack battery. To commemorate the event, the team held balloons that spelled out “15,000” as they posed for the photo.
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments. Designed for grid-scale applications, each Megapack offers 3.9 MWh of energy and 1.9 MW of power. The battery is extremely scalable, making it perfect for massive energy storage projects.
More Megafactories
The Lathrop Megafactory is Tesla’s first dedicated facility for its flagship battery storage system. It currently stands as the largest utility-scale battery factory in North America. The facility is capable of producing 10,000 Megapack batteries every year, equal to 40 GWh of clean energy storage.
Thanks to the success of the Megapack, Tesla has expanded its energy business by building and launching the Shanghai Megafactory, which is also expected to produce 40 GWh of energy storage per year. The ramp of the Shanghai Megafactory is quite impressive, with Tesla noting in its Q1 2025 Update Letter that the Shanghai Megafactory managed to produce over 100 Megapack batteries in the first quarter alone.
Tesla Energy’s Potential
During the first quarter earnings call, CEO Elon Musk stated that the Megapack is extremely valuable to the energy industry.
“The Megapack enables utility companies to output far more total energy than would otherwise be the case… This is a massive unlock on total energy output of any given grid over the course of a year. And utility companies are beginning to realize this and are buying in our Megapacks at scale,” Musk said.
News
Tesla launches “TeslaVision” video contest to celebrate Model Y deliveries
The program marks a revival of Tesla’s popular Project Loveday initiative back in 2017.
Tesla has announced the TeslaVision Contest, a global video showcase inviting fans and owners to highlight the impact of the company’s vehicles on people.
The program marks a revival of its Project Loveday initiative in 2017, which was extremely well-received by the electric vehicle community.
A Contest to Celebrate the New Model Y
As per the TeslaVision contest’s official website, the program is being rolled out to commemorate the launch and deliveries of the new Model Y across all continents. Thus, the contest could be seen as a global celebration and showcase of owners and fans who made Tesla the household brand that it has become today.
Participants are tasked with creating a 90-second or shorter video demonstrating how Tesla vehicles provide “more freedom, more safety, more fun, more convenience.” Submissions must be uploaded to YouTube and shared on X and Instagram with the tag @Tesla and the phrase “TeslaVision contest.”
Videos must align with Tesla’s mission to accelerate sustainable energy, be suitable for all ages, and avoid references to non-Tesla brands. English text or voice-overs are required, and entrants must relinquish rights to their content for Tesla’s commercial use.
A Big Prize Awaits
When Tesla launched Project Loveday in 2017, the company noted that the contest’s winner would receive an all-expenses paid invitation to an upcoming Tesla product launch. For TeslaVision, the grand prize is a lot more tangible, with the winner receiving a new Model Y AWD. They will also get an all-expenses-paid trip to Gigafactory Texas. Second and third-place winners will also receive a Giga Texas tour.
Finalists will be selected based on creativity, originality, relevance to the prompt, and entertainment value. Tesla will shortlist 100 videos, with the top 10 subject to public voting to influence the final judging. The contest is open to legal residents of the United States, Mexico, and Canada, aged 18 or older, with a valid driver’s license and Tesla account. No purchase is necessary, though entries are limited to just one per person.
Tesla Full Self-Driving’s European launch frustrations revealed by Elon Musk
Tesla Lathrop Megafactory celebrates massive Megapack battery milestone
Tesla launches “TeslaVision” video contest to celebrate Model Y deliveries
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