Tesla India ride faces sourcing norms hurdle

Getting car parts, competitive pricing will be other challenges, say industry experts

Tesla would be able to enter the India market only if it meets the 30 per cent local sourcing norms, till it sets up a manufacturing unit in the country. The American electric carmaker had expressed an interest to enter the market through brand sales.

“Even for brand sales, the company needs to meet local sourcing norms. Until the company establishes a manufacturing unit in India, we cannot waive off the conditions for single-brand retail,” a senior government official told Business Standard.

According to the latest consolidated foreign direct investment (FDI) policy, for more than 51 per cent FDI, 30