India, Feb. 21 -- The airwaves are abuzz once again with the news of EV giant Tesla entering India, after two prior failed attempts. Following Tesla CEO Elon Musk's recent meeting with Prime Minister Narendra Modi, Tesla has reportedly begun producing vehicles that it intends to import to the India market, while also scouting for potential locations to set-up a factory, although neither Musk nor any other sources have confirmed this.

In March 2024, the Indian government introduced a policy permitting EV manufacturers to import fully assembled electric vehicles (Completely Built Units or CBUs) at a reduced customs duty rate of 15%, applicable for a period of five years. Under this policy, a foreign EV maker can import up to 40,000 units a...