Although all eyes are on Tesla right now, the Indian government anticipates that the EV policy will be well-received by several manufacturers.
As Tesla prepares to enter the Indian market this year, the government is expected to alter the terms of the EV policy, which promotes the manufacturing of electric vehicles (EVs) in the nation. To entice EV manufacturers like Tesla, a revised EV policy may require carmakers to prove an annual turnover of ₹2,500 crore in their second year. Aside from that, the Indian government may provide more import duty relief to develop the country’s EV industry.
This step will significantly clear the route for companies like Tesla. After the revised EV policy is announced in mid-March this year, the Indian government is probably going to start accepting applications. According to IANS, licenses are likely to be granted by August 2025, with imports starting soon after.
This incident occurred as Tesla resumed operations in India, posting job openings for at least 13 positions across the country. This action was done almost immediately after Prime Minister Narendra Modi met with Tesla CEO Elon Musk during a recent trip to the United States. In recent months, the Indian EV industry has shown signs of considerable progress.
While Tesla has suggested that it will resume official operations in India, Vietnamese electric vehicle maker VinFast showcased electric vehicles at the Auto Expo 2025. While all eyes are currently on Tesla, the government expects a positive response from multiple automakers to the EV policy.
What the revised Indian EV policy would provide
In March 2025, the Indian government unveiled a new EV strategy. For automakers wanting to import their EVs into India, the government announced a 15% customs duty cut, subject to certain conditions. The policy requires a minimum expenditure of ₹4,150 crore to establish production facilities for electric vehicles in the country. This new EV policy enabled Tesla and other automakers to enter the Indian EV market.
The strategy also requires that local EV production start within three years and achieve 25 per cent DVA (domestic value addition) by three years, with a maximum of 50 per cent DVA within five. The policy revision requires EV makers to have an annual turnover of ₹2,500 crore in the second year.
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