India's EV policy, which offers import tax cuts for foreign automakers investing in the country, will restrict them from using funds spent on charging infrastructure for such relief, increasing their car manufacturing,

A CLSA report has highlighted that with a reduced tariff rate of 15-20 per cent, Tesla price in India will be more expensive than its domestic competitors like Maruti Suzuki. The company will need to open a manufacturing unit in India to keep up with competition.

As Tesla is soon planning to enter in India, even after the reduction in the import duty to below 20 per cent, the cheapest car of Tesla will cost around Rs 35 to 40 lakh, says a report by CLSA, a global capital market company.