India is actively pursuing Tesla to establish a manufacturing base, aiming to boost its position as a global manufacturing hub. Following recent discussions between Indian Prime Minister Modi and Tesla CEO Musk, Tesla is now showing increased interest, potentially driven by India’s new EV tariff policy. This policy offers reduced import duties for premium EVs, contingent on significant investment and local manufacturing commitments. However, challenges remain, including high price points for Tesla vehicles in the Indian market and the requirement for rapid local production. Analysts suggest Tesla’s entry will likely be gradual, starting with imports to gauge market demand. Geopolitical factors and Tesla’s existing commitments also play a role. Despite these hurdles, India’s growing EV market presents a valuable opportunity for Tesla amidst increasing global competition.
