Elon Musk's Tesla likely to begin India rollout through imported EVs: Report

Elon Musk-led Tesla is likely to enter the Indian market through direct imports, instead of committing to local manufacturing in the immediate future. The government is likely to prioritise integrating India into Tesla's global value chain rather than insisting on immediate local manufacturing commitments. The state may also offer further import duty relief.

A senior government official added that Tesla is not yet ready to set up a manufacturing facility in the country. The company will begin importing vehicles and gradually increasing local procurement. Tesla will start making spares and sourcing some components locally. If even 10 per cent of Tesla's production starts being manufactured in India, it is a step forward.

According to the government, excluding EVs from the Indian market does not serve a purpose if they are not going to be manufactured domestically in the next 5-7 years. Tesla has selected locations for two showrooms in the Indian cities of New Delhi and Mumbai, moving closer to its long-delayed plans to sell its electric cars in the country.