Tue Feb 18 17:18:20 UTC 2025: **Tesla’s India Hiring Spree Triggers Auto Stock Sell-Off**
**Mumbai, February 18, 2025** – Indian auto stocks experienced a significant sell-off today, February 17th, following news that Tesla has begun hiring in India. The Nifty Auto index plummeted by nearly 1.5% intraday. Major players like Ashok Leyland, Mahindra & Mahindra (M&M), and Tata Motors saw substantial declines.
Ashok Leyland shares fell as much as 2.76% intraday, closing down 1.61% at ₹222. M&M dipped 2.69% intraday, ending the day down 1.8% at ₹2780.95. Tata Motors shares dropped 2.10% intraday, closing at ₹682.50, a 0.72% decrease. Bajaj Auto also saw a decline, closing down 1.07% at ₹8445.80.
Tesla’s hiring of 13 employees for customer-facing and backend roles fuels speculation about its imminent entry into the Indian market, particularly after CEO Elon Musk’s recent meeting with Prime Minister Narendra Modi.
However, experts believe Tesla’s impact on the Indian auto sector won’t be immediate. Parthiv Shah, Director of Tracom Stock Brokers, points to India’s still-developing EV charging infrastructure as a major hurdle for quick market penetration. While the EV segment is growing rapidly, Tesla faces stiff competition from established players like Tata Motors and Mahindra & Mahindra, as well as other international brands such as Hyundai and BYD. Analysts suggest Tesla might initially focus on the luxury segment, while the highest demand in India remains for electric cars priced between ₹10-25 lakhs—a segment Tesla currently doesn’t serve.
Sanjeev Hota, Research Head at Mirae Asset Sharekhan, echoes this sentiment, predicting no immediate major impact from Tesla’s entry. Nevertheless, the recent reduction in import duty on vehicles above US$40,000 to 70% could facilitate Tesla’s market entry. Meanwhile, Indian automakers are strengthening their EV offerings, as evidenced by Mahindra & Mahindra’s recent launch of the XUV E9 and BE 6 electric SUVs, which already have ₹8,472 crore in pre-bookings. The Indian EV market, though growing (100,000 units sold in 2024), remains significantly smaller than China’s (11 million units).
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