BS EDIT: The Tesla Factor: Will It Disrupt India’s EV Market?

By Business StandardPublished On Feb 25, 2025

Tesla’s India Entry

After failed attempts in 2022 and 2024, Tesla is set to debut in India. Elon Musk’s meeting with PM Modi has renewed interest, but challenges remain

India’s EV Policy Shift

India now allows 40,000 EV imports at 15% duty over five years. Tesla must invest $500 million and set up a factory within three years

Market Challenges

EVs account for just 2.3% of India’s car sales. Tesla’s pricing—starting at Rs 50 lakh—limits its reach to the luxury segment

The Trump Factor

Donald Trump opposes Tesla’s India investment. Musk’s ties with his administration could complicate expansion plans

Can Tesla Change the Game?

Tesla sources $1 billion in components from India. A Rs 21 lakh model and local manufacturing could drive real disruption

Long-Term Impact

Tesla’s focus is on luxury imports for now. Its real impact depends on local production and affordability in the future