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).

Approval letters for eligible manufacturers could be issued by July or August 2025, paving the way for a flood of premium EVs into the Indian market soon after.

The government may let foreign electric vehicle makers like Tesla sell cars first and invest later, with final SMEC guidelines expected soon to kickstart local manufacturing incentives.

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,

As Tesla is soon planning to enter in India, even after the reduction in the import duty to below 20 per cent, the cheapest car of Tesla will cost around Rs 35 to 40 lakh, says a report by CLSA, a global capital market company.