Elon Musk’s Tesla, a popular car manufacturer in the global markets, appears to be ready to enter the Indian automotive market. The company had been in talks with the government about expanding its business in the Indian market for some time, but had been halted for a variety of reasons, including high import duties. However, following Prime Minister Narendra Modi’s recent visit to the United States and meeting with Elon Musk, the carmaker has begun hiring for a few positions in India, implying that it may soon enter India’s growing EV landscape.
The premium electric car maker is currently hiring for over 10 roles in India including Inside Sales Advisor, Customer Support Supervisor, Customer Support Specialist, Service Advisor, Order Operations Specialist, Service Manager, Tesla Advisor, Parts Advisor, Business Operations Analyst, Store Manager, and Service Technician. Almost all the openings were for Mumbai and Delhi, as per LinkedIn’s jobs page.
Prior to meeting PM Modi in the United States last week, Elon Musk’s Tesla attempted but failed to enter India twice. The possible reasons included a massive 110 percent import duty, which would make the cars very expensive in the Indian market. Another reason for backing out was the authorities’ insistence on local manufacturing. According to reports, the company was in negotiations but was unable to reach a middle. But this time, the company appears to be prepared to enter India, but how?
Amid the high tariff remarks by US President Trump, India has reduced the custom duties on imported luxury cars. The vehicles that were priced above $40,000 will now see a reduced import duty of 70 percent, down from 125 percent. Additionally, customs duties on lithium-ion batteries for electric vehicles were eliminated. This move is seen as an incentive for American companies, particularly Tesla, to invest in India’s growing electric vehicle market.
According to the reports, India’s recent reduction in import taxes can be a strategic move to address the US President Trump’s “America First” trade policy, which prioritise the local industry. He also criticised India for imposing high tariffs on foreign goods, claiming it has the highest tariffs among major economies. He also threatened to introduce reciprocal tariffs on Indian products and warned that countries within the BRICS bloc, including India, could face 100% tariffs if they moved away from using the US dollar. With this move, India seems to be sending signals to the US to prevent further trade barriers.
If Tesla enters India, it will be able to offer its premium EVs at lower prices. This could be a turning point for the company, particularly in India, where pricing is a key consideration. In addition, India is seeing an increase in demand for electric vehicles and infrastructure which can help Tesla cover its declining sale graph. According to the IBEF report, India is expected to become the largest EV market by 2030, with a potential investment of more than $200 billion over the next 8-10 years.
While it appears that Tesla is currently in the early stages of business expansion in India, it is unclear when it will begin selling its vehicles in the country. According to reports, the carmaker is already looking for showrooms, indicating that sales will begin soon.