Before Tesla starts business in India, the company’s chief resigns

Tesla, one of the big electric vehicle (EV) companies, plans to start business in the country soon. However, before this Tesla has suffered a major setback. Prashanth Menon, the head of the company’s unit in India, has resigned. For the last four years, he was leading the company’s operations in the country as the chairman of the board.

A Bloomberg report quoted sources with knowledge of this matter as saying that Menon has decided to leave the company for personal reasons. He had been working with billionaire Elon Musk’s Tesla for about nine years. Sources said that the company’s China team will temporarily oversee operations in India. Tesla did not respond to a request sent for comment on this. Menon has refused to comment.

Tesla is preparing to start business soon in India, the world’s third largest automobile market. There is a tax of up to 110 percent on imported vehicles in the country. Earlier, Musk has been insisting on reducing this tax. Starlink, a satellite internet service providing company of Musk, a close associate of US President Donald Trump, has been allowed to start business in India this week.

Competition has increased in the EV market for Tesla in the last few years. This is also affecting the company’s sales and profit. In the first quarter of this year, the company’s net profit has decreased by 71 percent. In the international market of EV, the sales of China’s BYD have increased rapidly in the last few years. Last year, BYD has overtaken Tesla in revenue from sales of electric cars. The company’s first showroom in India can open in Mumbai’s Bandra Kurla Complex (BKC). Recently, the company has leased about 4,000 square feet of space in BKC’s Maker Maxity building. The company can start business in the country in the second half of this year. Last month, Prime Minister Narendra Modi had a telephone conversation with Musk. After this, Musk had indicated that he might visit the country soon.