Tesla plans to enter India, begins hiring after PM Modi’s US visit
- In Reports
- 05:45 PM, Feb 18, 2025
- Myind Staff
Tesla Inc. has started hiring individuals in India. It shows a growing sign of plans to enter the market soon after Chief Executive Officer Elon Musk met Prime Minister Narendra Modi in the United States.
According to an ad on its LinkedIn page on Monday, Tesla, the electronic vehicle-producing company, was seeking candidates for 13 positions, including customer-facing and back-end jobs.
At least five positions were available in Mumbai and Delhi, including service technician and advisory roles. The other openings, like customer engagement manager and delivery operations specialist, were only in Mumbai.
Tesla has had a sporadic relationship with India over the years, mainly due to concerns about high import duties. However, India recently lowered the essential customs duty on cars priced over $40,000 from 110% to 70%, signalling a gesture of goodwill towards the US, in anticipation of President Donald Trump’s plans to impose reciprocal tariffs.
India’s electric vehicle (EV) market is still in its nascent stages compared to China’s, but it presents an opportunity for Tesla to counteract its slowing sales after the company experienced its first annual decline in EV sales in over ten years.
While India’s EV sales were under 100,000 units last year, compared to China’s 11 million, the market is growing rapidly, with both local and international car manufacturers increasing their efforts to introduce battery-powered vehicles.
Though the job postings signal Tesla’s intent to sell cars in India, this isn’t the first time the company has pursued this goal. In 2021, Tesla began setting up sales infrastructure in the country, hiring a team of a dozen and more executives.
At that time, the company had hired a lobbyist to negotiate with the Indian government to reduce import tariffs, which Musk had frequently criticised as an obstacle to Tesla's plans in India. However, a year later, Tesla postponed its plans, and all of its local executives moved on to other markets or took on different roles outside the company.
Lobbying efforts resumed in 2023 after Musk met Modi in the US, with Musk, the world's richest person, stating that Tesla would again invest in India "as soon as humanly possible."
In March 2023, the Indian government introduced a new initiative offering a 15% tariff reduction on electric car imports priced above $40,000, provided carmakers committed to investing $500 million in India and started local manufacturing within three years. However, in April, Musk suddenly cancelled his planned visit to India, citing “very heavy Tesla obligations,” and instead travelled to China.
The latest progress came after Musk and Modi met again during Modi's recent visit to the US. In a post on X, Modi mentioned discussing “space, mobility, technology and innovation” with Musk but did not provide details on Tesla's interest in selling cars or whether he will invest in India.
Tesla’s plans for India emerged at a crucial moment, as global adoption of electric vehicles faces challenges and competitors like BYD Co. are increasing their efforts. However, it's still unconvinced whether Tesla will actually invest in India at this stage.
Musk had mentioned in earnings call on April 24 that Tesla wasn’t planning to add new production capacities or manufacturing facilities. Instead, the focus was on “current production lines much more efficiently.”
During a White House press conference, Trump stated that Modi had agreed to start talks to address the US trade deficit and increase US military purchases, including actions that could eventually lead to a deal for F-35 fighter jets.
While Musk is an essential member of Trump's cabinet, the president did not clarify whether Musk met Modi as the CEO of private companies or in his position with the DOGE team.
Musk's involvement in Trump’s administration has made it harder to separate his business interests from his political connections. Last month, Italy acknowledged that it was discussing with Musk’s SpaceX for a deal to provide secure telecommunications for the country’s government. This development came after Prime Minister Giorgia Meloni met with then-President-elect Trump in Florida.
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