India eagerly awaits Musk’s response as government paves the way for Tesla’s entry

Tesla enthusiasts in India are eagerly awaiting a response from Elon Musk following the approval of a new electric vehicle policy aimed at attracting global manufacturers. The policy reduces customs duty to 15% for vehicles valued at $35,000 and above, subject to manufacturing facilities being set up in India within 3 years.

PM Modi’s 2015 visit to Tesla headquarters in California laid the groundwork for Musk’s interest in the Indian market. Last year, Modi met Musk in the US and encouraged investments in electric mobility. Musk announced plans to enter India, citing the Prime Minister’s push for significant investments in the country.

Under the new policy, manufacturers must invest a minimum of Rs 4,150 crore to set up manufacturing facilities and achieve 25% domestic value addition within 3 years. India’s EV market has the potential to reach over 40% penetration and generate $100 billion in revenue by 2030. The stage is set for Tesla’s entry into the Indian market, thanks to the government’s incentives for EV manufacturing.

With the reduction of customs duty and incentives for domestic production, Tesla could soon make its mark in India. Musk’s commitment to investing in the country aligns with PM Modi’s ‘Make in India’ initiative. The new EV policy aims to boost the adoption of electric vehicles and drive growth in the EV sector, positioning India as a key player in the global market for electric mobility.