Reports of Tesla executives visiting India revive hope for its arrival in the country

Elon Musk's Tesla is probably a pioneer in the global electric vehicle industry, but more than a decade after it hit the road, the brand is yet to drive into India. Although India's electric vehicle market surged by 223 per cent in 2022 alone, and is steered by only five carmakers, Tesla's entry hit a roadblock when it failed to reach an agreement on import duty with the government.

But as Tesla, like other major brands, seeks to diversify its manufacturing and supply chain beyond China, its senior executives will visit India this week.

Does Tesla plan to make in India?

• According to a Bloomberg report, the Tesla top brass will also meet people from Prime Minister Narendra Modi's office, among other government representatives.

• The idea is to locally source the components, which will be used for assembling Tesla cars in India, and to open up a growing EV market for the brand.

Mutually beneficial proposition

• The association of a major electric vehicle firm with the Make in India initiative, as well as the incentives on offer, will make it a win-win proposition for both Tesla and the Indian government.

• The visit could indicate a revival of Tesla's plans to make inroads into India, after Elon Musk had called it off last year, following a deadlock with the government on policy issues.

• Recently, Elon Musk had to recall 1 million Tesla e-cars in China due to local policies on safety.

• Although its arrival in India was delayed, Tesla has been manufacturing and selling Teslas in China since 2017.