US EditionTesla not keen on local production, minister says, as India finalises EV policy
- On June 2, 2025, India’s Heavy Industries Minister H.D. Kumaraswamy stated that Tesla does not plan to produce electric vehicles domestically but intends to enter the market by opening showrooms and importing cars.
- This announcement followed stakeholder discussions where global automakers like Mercedes-Benz, Skoda-Volkswagen, and Hyundai expressed interest in EV manufacturing under a government scheme notified in March 2024.
- Companies committing to local production of electric passenger vehicles must invest at least ₹4,150 crore to qualify for substantial reductions in import duties under the government’s initiative designed to boost domestic EV manufacturing.
- Tesla’s Elon Musk has criticized high import tariffs in India, and India recently reduced import duties from 70 to 15 percent for companies investing $486 million in local EV production.
- Tesla’s reluctance to localize production suggests the company will rely on imports while India continues incentivizing domestic manufacturing to bolster its large automotive market.
30 Articles
30 Articles
Tesla not interested in manufacturing EV in India, says Union Minister Kumaraswamy
Tesla is not interested in setting up a manufacturing plant in India, even as the country rolls out a new electric vehicle policy to attract global carmakers, HD Kumaraswamy said. Instead, the company wants to sell imported cars through local showrooms.
Tesla bails on crucial piece of India production, aims to rely on imports
Tesla is bailing on a crucial piece of the puzzle that would likely enable the production of its vehicles in India, and will instead rely on imports, a bold strategy in the broader scheme, as the country has prioritized local manufacturing in an effort to bolster its economy. The automaker has dragged its feet to commit to a localized production strategy in India, something that seemed to be the only pathway to a mass market presence in what is …
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