The Elon Musk-led company has been delaying its India launch over concerns related to existing policies and higher import duties. Musk was reportedly planning his India visit in April last year to meet PM Modi to discuss Tesla’s investments in the Indian market. The meeting was postponed at the last minute.
However, spelling relief for Tesla, the government recently announced a basic customs duty cut on high-end cars.
Finance Minister Nirmala Sitharaman in her Budget 2025 speech slashed the basic customs duty on high end cars, including station wagons and race cars priced above $40,000 to 70% from 125% earlier.
She also scrapped basic customs duties on lithium-ion batteries used in electric vehicles with the aim of reducing EV production costs and to encourage domestic manufacturing.
Tesla is also expected to bring its low-cost electric vehicle to India this year. The company’s cheapest offering in the US, the Model 3, is priced at around $30,000. However, it is expected to enter the Indian market with a cheaper variant of the car to make space in the price competitive EV segment.
