India's EV policy, which offers import tax cuts for foreign automakers investing in the country, will restrict them from using funds spent on charging infrastructure for such relief, increasing their car manufacturing,

A CLSA report has highlighted that with a reduced tariff rate of 15-20 per cent, Tesla price in India will be more expensive than its domestic competitors like Maruti Suzuki. The company will need to open a manufacturing unit in India to keep up with competition.

Even if the Indian government reduces import duties to less than 20%, Tesla's cheapest electric car could still cost between ₹35-40 lakh, as per global capital markets firm CLSA. Currently, Tesla's cheapest car—Model 3—costs around $35,000 (approximately ₹30.4 lakh).

Tesla is planning to start selling these cars in three major India cities, including Mumbai, Delhi, and Bangalore around the third quarter of the year, the people, who asked not to be identified discussing private plans,

The government is likely to prioritise integrating India into Tesla's global value chain rather than insisting on immediate local manufacturing