The sources said the local automobile grouping is now aggressively putting forward their views in conversations with the government even as industry body Society of Indian Automobile Manufacturers (Siam) firms up a representation on the matter. “Clearly, it is now a situation where the local makers (domestic and multi-national) are standing against the newcomers like Tesla, fearing that an ‘easy, well-facilitated entry’ may mar the chances of their electrics,” the source said.

“The government is considering to exclude batteries, semiconductors, and magnetic parts from localisation conditions when it comes to import of electrics, and this can be a major benefit for companies such as Tesla that will take time to get its trusted supply chain to India even if it goes ahead and sets up a factory here over the coming years,” sources told TOI.

The new consideration is not going down well with local players (Mahindra & Mahindra and Tata Motors) and also foreign companies that have been operating in India for decades (such as Maruti Suzuki, Toyota, Hyundai, and Kia). The companies, already up in arms over the proposal to lower the