Tesla country head for India Prashanth Menon has resigned ahead of the US electric carmaker’s planned entry into the world’s third-largest car market. As per a Bloomberg report, Tesla's China teams will oversee Tesla’s India operations, with no immediate successor named.
Menon is also stepping down as the chairman of Tesla India's board, added the report citing sources. Tesla is yet to issue a statement on Menon’s departure and his successor.
The Elon Musk firm has been trying to enter the Indian market for years. The brand has already secured showroom locations in Delhi and Mumbai to begin selling imported cars here. It has also posted close to two dozen mid-level jobs here this year, signaling progress in its plans to launch in the country.
The company CFO Vaibhav Taneja had last month said Tesla is cautiously navigating an entry into the Indian market. Tesla stated that high taxes remain a concern as this makes Tesla cars in India twice as expensive as they are in the US.
Taneja, however, called India a “very hot market” owing to its growing middle class. The CFO’s statement on the long-awaited India entry came soon after Tesla CEO Musk spoke with India’s Prime Minister Narendra Modi on topics including collaboration on technology and innovation. Musk is expected to visit India later this year.
Separately, India and the USA have been working on a bilateral trade deal. The ongoing trade talks between the two countries, which could lower tariffs on imported EVs, are seen as a critical factor in Tesla’s market entry.