Tesla Announces New Hiring Plans in India

Nitin Konde, Varun Bhardwaj

18 Feb 2025 — 3 min read

Tesla Unveils Hiring Plans for India Expansion

Tesla CEO Elon Musk, a pivotal figure in the Trump administration, met with Prime Minister Narendra Modi less than a week ago to discuss a bilateral roadmap for enhancing technology ties. However, Tesla has taken a big step by starting its employment process in India in this short time frame and after Modi's visit to the US, where India and US President Donald Trump agreed on a trade deal roadmap. It would appear that Tesla is reaffirming its plan to enter India.

Tesla, which has long had a small presence in India, is currently hiring for 13 positions, both back-end and customer-facing ones. Following years of negotiations that experienced numerous setbacks due to tax exemptions and local manufacturing regulations, the news has rekindled rumours regarding Tesla's long-awaited debut into India. Musk has long criticised India's high import taxes, claiming that they are a significant obstacle to Tesla's growth there. At the moment of Tesla's action, US President Donald Trump is advocating for strict tariffs.

Picture Still Not Clear

Tesla's abrupt decision to begin hiring in India has raised the prospect of large investments coming to the nation, but is there more to this than what first appears? Whether Tesla will get the tax breaks it has long desired is still up in the air. Additionally, we are currently unaware of Tesla's plans to manufacture or assemble in India. However, the timing of Tesla's ambitions to hire people in India has sparked a lot of debate due to growing tariff concerns and Musk's tight relationship with Trump.

Now a significant Trump buddy, Elon Musk has a lot of influence within the government. Trump's election to a second term in office means that US trade policy will probably become more assertive. Although Tesla had previously backed out of its intentions for India, the country may now feel pressured to provide more favourable terms due to the shifting political climate. Tesla has been pursuing reduced import taxes for years prior to making significant investments in India. In the past, New Delhi has lowered electric vehicle import duties for businesses that made at least 41.5 billion rupees ($500 million) and set up local manufacturing within three years. However, Tesla faces growing competition in India's quickly changing EV industry.

India’s Current EV Sector

The electric vehicle market in India is expanding quickly as local producers boost output. Businesses like Maruti Suzuki, Mahindra & Mahindra, and Tata Motors are actively growing their EV product lines. The e-Vitara was introduced at an auto exhibition in February by Maruti Suzuki, which had been a latecomer to the EV industry. New models were also displayed by other players, including VinFast from Vietnam.

Additionally, local manufacturers are solidifying their positions at the same time as Tesla's recruiting announcement. A Tesla entry might cause market disruption and put pressure on domestic companies that have invested heavily in the industry. Mahindra & Mahindra and Tata Motors have resisted any decrease in import taxes, claiming that doing so will hurt their ability to compete.