FEBRUARY 20259TESLA GEARS UP FOR INDIA ENTRY WITH IMPORTED ELECTRIC VEHICLESTRUMP AND MODI DISCUSS TRADE, DEFENCE, AND ENERGY AMID TARIFF DISPUTESThe Indian electric vehicle (EV) sector is poised for a major change as American EV leader Tesla is set to unveil its operation in the country. Tesla's intent to US President Donald Trump welcomed Indian Prime Minister Narendra Modi to the White House on Friday, describing him as a "great friend" while reinforcing his administration's firm stance on trade policies.During their meeting in the Oval Office, the two leaders engaged in wide-ranging discussions on strengthening bilateral relations, with a focus on defence, energy, and critical technology. Trump announced plans to finalise "some initiate selling imported electric vehicles by April 2025 is set to shake up the premium EV market and drive India's shift towards sustainable transportation.A report specifies that Tesla will first bring in vehicles from its Berlin factory, providing less expensive EV models that cost about USD 25,000 (roughly Rs 21 lakh). The EV manufacturer has also identified main sites in Mumbai's Bandra Kurla Complex (BKC) and Aerocity, close to New Delhi's international airport, for opening its sales actions.In a bid to enhance its presence in India, Tesla has recently announced locations for 13 mid-level roles, such as store managers, service advisors, customer relationship managers, and sales specialists. Tesla continues building solid retail infrastructure across the 'Mumbai Suburban' region for its future operations in the nation.The decision followed a meeting between Tesla CEO Elon Musk and Indian Prime Minister Narendra Modi during their U.S. discussion about Tesla entering the Indian market. Government policy changes in EV policy now allow manufacturers to benefit from import duty reductions after building local manufacturing facilities worth at least USD 500 million.As the Indian EV setup transforms rapidly, Tesla's entry might even alter the market dynamics, encouraging both local and international automakers to increase their EV products and charging stations in the nation. wonderful trade deals" with India but reiterated concerns over tariffs and market access.Modi congratulated Trump on his second term and expressed optimism about enhancing economic cooperation. "I firmly believe that in your second term, we will work with more speed," he said.Trade tensions remain a significant challenge. Trump, who has previously referred to India as the "tariff king," once again criticised its high import duties. "Whatever India charges, we charge them," he remarked. "So, frankly, it no longer matters to us that much what they charge."Despite these frictions, both sides signalled progress on economic initiatives. India aims to double its trade volume with the US by 2030, while Washington seeks to expand its role as a major energy supplier to India. Trump's newly announced reciprocal tariff policy, which seeks to match tariffs imposed by other nations on US goods, cast a shadow over the talks. A White House fact sheet highlighted disparities, noting that while the US applies an average tariff of 5 percent on agricultural imports, India's rate stands at 39 percent.As both nations navigate trade negotiations, their strategic partnership in the defence and energy sectors is expected to remain a key pillar of their bilateral relationship.
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