Tesla is gearing up to enter the Indian market, and to facilitate this, the Indian government is expected to revise its electric vehicle (EV) policy. The updated framework is likely to require automakers to achieve an annual turnover of ₹2,500 crore by their second year of operations. Additionally, the government may introduce further import duty relaxations to attract global EV manufacturers.
The revised policy is expected to be notified by mid-March, with applications opening soon after. Approvals could be granted by August 2025, paving the way for Tesla and other companies to begin vehicle imports shortly thereafter. This move aligns with India’s larger goal of accelerating EV adoption and boosting local manufacturing.
Tesla has already signaled its renewed interest in India by posting job listings for multiple roles across various cities. This development follows a crucial meeting between Tesla CEO Elon Musk and Indian Prime Minister Narendra Modi during the latter’s US visit. The meeting reignited discussions about Tesla’s presence in India, which had previously faced regulatory hurdles.
India’s EV market is witnessing rapid evolution, with global automakers recognizing its potential. Vietnamese EV maker VinFast made headlines with its debut at Auto Expo 2025, adding to the growing competition. While Tesla’s entry is highly anticipated, the revised EV policy is expected to attract interest from several other major automobile players.
