New Delhi | Jagran Auto Desk: Billionaire Elon Musk has broken his silence on the much-awaited launch of Tesla in India. Musk, who is the CEO of Tesla, said that he is facing a "lot of challenges" in the launch of Tesla cars in India.

"Still working through a lot of challenges with the government," Musk tweeted. Musk was replying to a Twitter user, who asked: "Yo @elonmusk any further update as to when Tesla's will launch in India? They're pretty awesome and deserve to be in every corner of the world!"

Tesla wants to begin selling imported cars in India this year but says taxes in the country are among the highest in the world.

With a $39,990 global price tag, Tesla Model 3 may remain as an affordable model in the US but with import duties, it would become unaffordable in the Indian market with an expected price tag of around Rs 60 lakh.

Currently, India levies 100 per cent tax on the imported cars of price more than $40,000 (Rs 30 lakh) inclusive of insurance and shipping expenses, and cars less than $40,000 are subject to 60 per cent import tax.

The government may consider lowering import duty along with offering other sops to Tesla but for that, the EV major would have to invest in setting up a manufacturing facility in the country.

Earlier, Union Minister for Road Transport and Highways, Nitin Gadkari, informed that the Tesla car would cost about Rs 35 lakh in India.

It is worth mentioning that Tesla chief Elon Musk had first announced the launch of his company's 'Model 3' car in India in the year 2017. Even the pre-bookings started in 2016. Not only this, there was a lot of craze for Tesla in India at that time and some well-known people of the country had booked the car. However, the giant electric vehicle maker company had dropped its plan at the last moment due to its reservations with India's import policy.

(With inputs from agency)

Posted By: Subhasish Dutta