Tesla to Import EVs from Germany as India Expansion Gains Momentum
Tesla is preparing to enter the Indian market and is expected to import its electric vehicles (EVs) from Germany instead of China, aligning with India’s trade preferences. According to The Times of India, this move follows concerns from the Indian government about Chinese imports.
Tesla is likely to take advantage of India’s revised EV policy, introduced in March 2024, which allows automakers to import up to 8,000 vehicles per year at a reduced 15% customs duty—down from the standard 110%—in exchange for a minimum investment of ₹4,150 crore ($500 million) in local manufacturing. Additionally, Tesla must meet domestic value addition (DVA) requirements to boost local component sourcing.
Several Indian states, including Gujarat, Maharashtra, Tamil Nadu, and Telangana, are competing to host Tesla’s manufacturing facility. State governments are actively engaging with Tesla, offering incentives and infrastructure support to secure the investment.
Industry experts believe Tesla’s India expansion will accelerate the country’s EV adoption and local supply chain development, positioning India as a key player in the global EV market.
Source: Business Standard
