Caution bumpy ride ahead: Modi wants Tesla to Go ‘Make in India’

Tesla is finally coming to India, the country is ready roll out the red carpet along with a Bollywood dance number or two. As good as it sounds, the million dollar question is, will they actually build the cars here, or import them? An NBC report suggests that Prime Minister Narendra Modi wants Tesla to go Make-in-India, which will further boost the country’s global manufacturing hub credentials. 

Tesla has officially started recruiting in India by posting 17 job openings including Consumer Engagement Manager, Service manager on its official LinkedIn page. The EV maker has also identified sites for its upcoming showrooms in Delhi and Mumbai. Tesla has opted for Aerocity in New Delhi and Bandra Kurla Complex in Mumbai. 

Proposed new EV import policy

Reports suggest that the Indian Government is planning to lower the import duties from 110% to under 20% for EVs costing over $35,000. To qualify for lower import tariffs, EV companies must commit to a new investment of at least ₹4150 crore (around $500 million) in India, excluding prior investments and land/infrastructure costs.

In addition, manufacturers must meet escalating revenue targets —  Rs 2500 crore by year two, Rs 5000 crore by year four, and Rs 7500 crore by year five. They also have three years to set up manufacturing and must achieve 25% local content initially, rising to 50% within five years of approval.

Meeting these requirements unlocks a reduced tariff structure, allowing foreign EV brands to import up to 8,000 high-end electric vehicles, each priced over $35,000, roughly Rs 30 lakh.