Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), has addressed the lingering questions surrounding Tesla’s entry into the Indian market. In an interaction with CNBC-TV18, Singh clarified that the responsibility for the delay lies with Tesla, not the Indian government. He acknowledged that the government has received inquiries from Tesla representatives but emphasized the lack of concrete information due to changes within the company.
Singh highlighted India’s welcoming stance towards all companies seeking to enter the Indian market, emphasizing the level playing field provided by the country’s policies. He explained that detailed guidelines are developed by the Ministry of Heavy Industries (MHI) upon receiving notification from interested companies. He expressed confidence in Tesla’s eventual arrival, stating, “I am sure Tesla will come in.”
However, Singh was quick to emphasize that India’s EV market is open to all global companies, not just Tesla. He pointed out the low EV penetration in India, with only 2% market share for electric vehicles in the passenger segment. He further highlighted the success of India’s strategy in other sectors, using the example of tire manufacturers like Michelin. By relaxing restrictions on tire product categories, India attracted investments from companies like Michelin, who subsequently established manufacturing facilities in the country. This strategy resulted in a ₹ 1100 crore investment from foreign companies.
Singh expressed optimism regarding the potential for investment in India’s EV sector, even without the implementation of a Production Linked Incentive (PLI) scheme. He emphasized that the country’s import policies and tariff measures can incentivize investment. He concluded, “I am sure in the EV space also, the traction will come.”
The ball is now in Tesla’s court to address the internal and external factors influencing their entry into the Indian market. While India has clearly expressed its open arms to the electric vehicle manufacturer, the final decision rests with Tesla.
