Tesla Hiring in India After Modi-Musk Talks: What Held It Back Before?

Billionaire Elon Musk's Tesla Inc. has posted several job openings in India, hinting at the Electric Vehicle (EV) maker’s entry into the Indian market. This comes after Prime Minister Narendra Modi met with Musk recently at the Blair House during his two-day visit to the United States. According to reports, Musk sought concessions from PM Modi and asked for lower tariffs on imported EVs.

The EV giant is seeking candidates for 13 roles, including Vehicle Service, Sales and Customer Support, and Operations and Business Support roles. The job titles for these roles are Service and Parts Advisor, Service Technician, Store Manager, Business Operations Analyst, Customer Support Supervisor, and more.

Tesla has been in the business of making EVs for over two decades. It has business operations in over 50 countries, including stores, galleries, service centers, and supercharger stations. Despite this level of global penetration in a segment like EV, why could it not enter India before?

Also Read: After Modi-Musk meeting, Tesla looks to hire employees in Mumbai, Delhi

Tesla India Delay

Musk has been teasing Tesla’s India entry since 2019 but has not executed his idea to date. Later in 2021, Tesla was planning to attempt to enter India again and had even finalised to set up a retail store and a company office in the Lower Parel Area in Mumbai. However, the plan failed as the company failed to convince the Indian government to reduce import duties on Tesla vehicles.

According to the Society of Indian Automotive Manufacturers, India levies a 100% import duty on cars with a Cost, Insurance, and Freight (CIF) value of more than $40,000 (Rs 30.6 lakhs). India slaps a 60% import duty on cars with a CIF value of less than $40,000. Furthermore, India slaps a 125% import tariff on second-hand vehicles. Apart from that, India imposes a 10% social welfare levy on electric vehicles.

Tesla requested the Indian government to reduce federal taxes on entirely assembled cars costing below $40,000 to 40%. The EV maker even agreed to build a factory in the country but only after initially analysing the response seen by imported cars. The Indian government however denied any possibility of reducing taxes.

Also Read: Tesla Starts Recruitment in India, Sends Signal of Entering EV Market

In 2023, several Tesla officials met with PM Modi and government officials to discuss the possibility of sourcing the components locally. Later the same year, the company leased an office space in Pune for five years. PM Modi met Musk twice in the same year further boosting speculations on the EV giant’s entry in India.

In 2024, the central government announced that it would update its EV policy providing duty concessions for companies that commit to invest a minimum of $500mn in the country.

None of these plans could ever materialise as Musk’s plans to meet with PM Modi and announce investments in an auto factory in India were canceled last minute due to "very heavy Tesla obligations.”