Founder and CEO Elon Musk tweeted that Tesla is pushing for import tax waivers to launch its vehicle in India.
In discussions with the government of India requesting temporary relief on import penalties/restrictions until a local factory is built
— Elon Musk (@elonmusk) June 14, 2017
Musk has shown support for India’s plans to have only electric cars on its roads by 2030. According to BusinessLine, India’s government is willing to talk to Tesla while also clarifying that the local sourcing norms don’t apply to cars.
Import duty of cars in India is as high as 125%. Completely-built electric cars priced less than $40,000 attract 60 percent customs duty. However, if assembled in India, the duty on a completely knocked down unit is 10 percent.
Last updated: December 26th, 2025
