India's Road Transport and Highways Minister Nitin Gadkari gave a clear message to Tesla. He welcomed Tesla to India and indicated that concessions would be given if the company would manufacture locally. However, he made it clear that if Tesla manufactures in China and intends to sell in India, no concessions will be given.

Recently, it was reported that the Indian government is considering a policy framework aimed at high-end, technologically advanced vehicle manufacturers like Tesla. The plan includes a substantial cut in import duties on electric vehicles, possibly as low as 15%, with the condition that carmakers start manufacturing operations in India, increase local component sourcing and banks cover potential defaults on their commitments. Committed to providing guarantees.

The government is expected to request a firm commitment from companies to establish supplier ecosystems and increase local parts sourcing. Bank guarantees will be provided to protect against companies failing to meet their commitments. This policy change aims to encourage companies with advanced technologies to invest and manufacture in India.

The main goal is to boost electric vehicle production in India, making it an attractive market for companies like Tesla, BMW and Audi. Positive discussions between Tesla executives and the Indian government and Prime Minister Narendra Modi's meeting with Elon Musk have given a boost to this initiative.