India's EV policy, which offers import tax cuts for foreign automakers investing in the country, will restrict them from using funds spent on charging infrastructure for such relief, increasing their car manufacturing,

A CLSA report has highlighted that with a reduced tariff rate of 15-20 per cent, Tesla price in India will be more expensive than its domestic competitors like Maruti Suzuki. The company will need to open a manufacturing unit in India to keep up with competition.

Tesla is planning to start selling these cars in three major India cities, including Mumbai, Delhi, and Bangalore around the third quarter of the year, the people, who asked not to be identified discussing private plans,

The government may let foreign electric vehicle makers like Tesla sell cars first and invest later, with final SMEC guidelines expected soon to kickstart local manufacturing incentives.

Tesla Inc. is set to make its long-awaited entry into India by shipping a few thousand cars to a port near Mumbai in the coming months, according to people familiar with the matter, marking its long-awaited debut in the world’s most populous country.

Even if the Indian government reduces import duties to less than 20%, Tesla's cheapest electric car could still cost between ₹35-40 lakh, as per global capital markets firm CLSA. Currently, Tesla's cheapest car—Model 3—costs around $35,000 (approximately ₹30.4 lakh).

The government is likely to prioritise integrating India into Tesla's global value chain rather than insisting on immediate local manufacturing