Tesla’s long-awaited entry: What it means for India

After years of speculation, hope, and negotiation, American electric car manufacturer, Tesla is finally taking concrete steps toward entering the India market. This development holds substantial implications for the Indian automotive industry, signaling potential shifts in market dynamics, technological advancements, and infrastructure development. Tesla’s interest in the Indian market dates back to 2016, when CEO Elon Musk announced that pre-orders for the Model 3 were open to Indian customers. However, high import duties and regulatory challenges delayed its entry. In 2021, Tesla officially registered a company ‘Tesla India Motors and Energy Pvt. Ltd.’ in Bengaluru, signaling serious interest. But negotiations between Tesla and the Indian government over high import duties and local manufacturing commitments stalled progress again. Since then, news of Tesla’s plans has periodically surfaced, often without tangible results. Fast forward to 2025, this time, the signs are real and robust. Tesla is preparing to enter India not just as an importer, but potentially as a manufacturer and key player in the country’s growing EV (Electric Vehicle) ecosystem. The Red Carpet Rollout Tesla’s renewed interest aligns closely with the Indian government’s efforts to attract global EV giants. India recently unveiled a new EV policy offering reduced import duties (15%,