Why is Tesla now entering the Indian market after previously holding back?

Tesla previously hesitated to enter India's EV market due to high import duties, which made it difficult to operate profitably. However, recent policy changes have created a more favorable environment for global EV manufacturers. The Indian government has significantly reduced the basic customs duty on high-end EVs priced above $40,000 from 110% to 70%. This substantial reduction in import tariffs makes it economically viable for Tesla to bring its vehicles to the Indian market, despite India's relatively small EV sales volume of just 100,000 electric cars in 2023 compared to China's 11 million.