Tesla to Enter Indian EV Markets in 2024

India may finally welcome Tesla, the American electric vehicle (EV) manufacturer, after a prolonged anticipation. According to a report from ET, the Prime Minister's Office in India has instructed concerned departments to expedite Tesla's planned investment in the country, aiming to complete it by January 2024.

India's Automobile market, ranked third largest globally after China and the US, is set to reach a new level of maturity with the arrival of Tesla. In addition to the United States, Tesla has established manufacturing facilities in Germany and China. The current economic slowdown is causing Western countries to face challenges with dwindling demand. Moreover, Tesla is contending with fierce competition from local electric vehicle manufacturers in China. In light of these circumstances, venturing into the Indian market appears to be a favorable opportunity for the American company. In the beginning, the company will offer fully assembled cars that have been imported into India for sale.

The local Automobile industry in India has been stirred up by the government's discussion of reducing steep import duties on cars, including Tesla and other brands. Tesla's potential advantage over struggling Indian electric car manufacturers could result from reduced import duties. Elon Musk, CEO of Tesla, has engaged in lengthy negotiations with the Indian government aimed at obtaining lower import duties and permission to sell fully assembled imported vehicles right from the beginning.