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,

Tesla Inc. is set to make its long-awaited entry into India by shipping a few thousand cars to a port near Mumbai in the coming months, according to people familiar with the matter, marking its long-awaited debut in the world’s most populous country.

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.

India last year announced a policy aimed at attracting Tesla to manufacture EVs in the country and let such foreign carmakers import cars at a 15% tariff, from around 100% now, but only if they invest at least $500 million for a factory.

Tesla is preparing for its highly anticipated entry into the Indian market, a move that has generated excitement among EV enthusiasts and potential buyers. However, despite the possible reduction in import duties,

Tesla's entry would not have a significant impact on major Indian automakers, as the overall penetration of EVs in India remains lower, the report claimed

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.