Elon Musk’s company is considering setting up a plant in the country to diversify from China
Tesla has reportedly begun the hiring process in India, signaling its plans to start operations in the country. The company headed by tech billionaire Elon Musk is looking to fill 13 job roles, including customer-facing and back-end positions, Indian media outlets reported on Tuesday.
The news comes after Indian Prime Minister Narendra Modi met with Musk in Washington last Friday during his visit to the US. After their meeting, Modi shared on X that he and Musk had discussed various topics, including space, mobility, technology, and innovation. “I talked about India’s efforts toward reform and furthering ‘Minimum Government, Maximum Governance,’” Modi added.
Musk also serves as the co-head of the US Department of Government Efficiency (DOGE), which is spearheading President Donald Trump’s campaign to streamline government operations and eliminate wasteful state spending.
#WATCH | The bilateral meeting between PM Narendra Modi and Tesla CEO Elon Musk is underway at Blair House in Washington, DC.
Musk has been eyeing entry into the Indian market for more than a year, although his efforts have faced multiple obstacles. Last year, he planned to meet Modi in India to announce Tesla’s intentions but canceled the trip, citing “very heavy Tesla obligations.”
Reports later indicated that investments in India had been put on hold. Instead, Musk made a surprise visit to China in April to address Tesla’s declining sales and to introduce the company’s self-driving technology. Bloomberg later reported that Indian government officials believed Tesla was experiencing capital constraints and did not intend to invest in India in the near future, which may have influenced Musk’s decision to cancel his visit.
Simultaneously, New Delhi introduced a new Electric Vehicle (EV) Policy last year to attract foreign manufacturers, including Tesla. The initiative offers import duty concessions to companies that establish manufacturing units in India with a minimum investment of $500 million. Under the previous regime, imported cars valued over $40,000 faced a 100% customs tax, while those under $40,000 incurred a 70% duty. The revised tariff was seen by some as a result of Tesla’s lobbying, suggesting that the company played a role in creating a more favorable business environment for foreign EV makers.
Experts view Tesla’s renewed interest in the Indian market as a “hedging” strategy, especially after a new 10% tariff was imposed on all Chinese products by the Trump administration. China is Tesla’s second-largest market after the US, accounting for around 33% of the company’s total vehicle sales in 2023.
In addition to Tesla, another of Musk’s ventures, Starlink, has made strides toward entering the Indian market. In November 2024, India’s telecommunications minister announced that Starlink had submitted an application to provide satellite broadband services in India. The Indian government is currently reviewing the application as part of the security clearance process necessary for the tech giant to begin operations in the country.
