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A. Tesla would encounter several obstacles if it were to enter the Indian market. To begin with, Tesla prefers to bring its automobiles to India from China, where production costs are cheap. The Indian government is hesitant to offer China any commercial advantage, citing China's expansionist and military misadventures in Aksai China and Arunachal Pradesh. Second, lowering Tesla's import tariff will encourage international EV companies to demolish Indian EV manufacturers and startups in India. Tata, for example, has previously stated its opposition to such measures as decreasing import taxes on Tesla automobiles will go against India’s plan of boosting local electric vehicle manufacturing.
B. The delay in Tesla’s entry will not affect local EV manufacturing in any way as most local manufacturers see higher import tax on Tesla as an opportunity to boost their business opportunities in the country.