After years of delays, Elon Musk is finally bringing Tesla to India, marking a significant step for the electric vehicle (EV) giant as it navigates declining profits, slowing sales, and increasing competition from Chinese rivals like BYD.
The move comes at a time when global investor confidence in Tesla has weakened, with its stock dropping more than 25% since mid-December.
India has introduced new policy incentives aimed at attracting EV manufacturers, including a reduction in import duties from 100% to 15% for foreign automakers willing to invest at least $500 million in local manufacturing. Additionally, Tesla has already begun hiring for key roles and has reportedly selected showroom locations in Mumbai and Delhi, signaling its commitment to the Indian market.
While India is keen on attracting Tesla and other foreign EV makers, it is also limiting investment in charging infrastructure to just 5% of the total investment, focusing instead on boosting domestic manufacturing. The government is expected to finalize its EV policy next month, which will further clarify regulations for companies like Tesla looking to expand in the country.
Tesla’s India expansion comes amid growing competition from Chinese EV makers, a shrinking brand presence in key markets like Germany, and overall declining demand. As Tesla aims to regain its momentum, entering one of the world’s fastest-growing automotive markets could offer a much-needed boost.
With input from Reuters and the Economic Times.
