Under the planned EV scheme, Tesla would also need to follow a 3-year timeline for setting up manufacturing facilities in India, reaching a 50% domestic value addition within 5 years.
Analysts say jumping into this commitment would be premature for Tesla, based on their current price points.
A research note from BNP Paribas on Monday stated that local production in India won't make sense unless Tesla can reduce its vehicle prices to below $30,000 to allow for mass volumes in India.