Tesla, the electric vehicle (EV) giant led by Elon Musk, has taken a significant step towards entering the Indian market by posting job openings in the country for the first time. The listings, which appeared on LinkedIn, indicate that Tesla is gearing up to establish showrooms in Delhi and Mumbai. However, the crucial question remains—will Tesla manufacture its cars in India, as the Indian government desires, or will it only focus on imports?
The latest development comes just days after Musk met Prime Minister Narendra Modi during the latter’s visit to the United States. The timing of Tesla’s hiring process has triggered speculation about a possible breakthrough in negotiations between the EV maker and the Indian government.
The Indian government has been firm in its stance that Tesla is welcome in India but must not manufacture its vehicles in China and then import them. Union Minister for Road Transport and Highways Nitin Gadkari has reiterated this position multiple times, emphasizing that Tesla should establish a manufacturing base within India if it wants to capitalize on the country’s growing EV market.
To encourage global EV players to manufacture in India, the government last year introduced a policy offering a reduced import duty of 15% for up to 8,000 foreign-made EVs annually, provided the manufacturer commits to an investment of $500 million for local production. However, Tesla has been hesitant to enter India due to the high customs duties levied on imported vehicles and previous trade tensions between the United States and India, particularly during the Trump administration.
In the latest Union Budget, the Indian government reduced the basic customs duty on high-end cars priced above $40,000 from 110% to 70%, though an additional 10% duty was imposed. A senior government official, speaking to CNN-News, remarked that India is poised to become a major EV market and that no global company, including Tesla, can afford to ignore it.
Tesla’s job postings indicate an initial focus on sales and service roles in Delhi and Mumbai. Among the positions listed, the role of a ‘Tesla Advisor’ involves assisting customers in Tesla showrooms and providing an innovative buying experience, while a ‘Sales Advisor’ will be responsible for building and training a sales team in India. Other roles include ‘Service Technician’ positions, which entail inspecting, repairing, and servicing Tesla vehicles as well as conducting pre-delivery inspections of new cars.
While these hiring moves confirm Tesla’s intent to enter India, the larger question of local manufacturing remains unanswered. Whether Tesla will set up production facilities in India or continue to seek lower import duties for its vehicles remains to be seen.
