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Tesla not keen on local production, minister says, as India finalises EV policy
- On June 2, 2025, India's Heavy Industries Minister H.D. Kumaraswamy announced the release of detailed guidelines for the government initiative aimed at encouraging the production of electric vehicles within the country during a press briefing.
- The scheme, notified on March 15, 2024, aims to boost local EV production by offering tax cuts to foreign automakers who commit substantial investments, but Tesla declined local manufacturing.
- Kumaraswamy confirmed Tesla plans to establish showrooms and import vehicles rather than manufacture locally, unlike other carmakers such as Mercedes-Benz and Hyundai showing production interest.
- In May 2025, Tesla's Model Y was the best-selling electric vehicle in Norway with 2,344 sales, capturing 19 percent of total monthly EV sales, while Musk highlighted $30,000 as a key price point with tax credits.
- These developments suggest Tesla may delay local production in India and rely on imports, even as the government works to cut import duties and incentivize domestic EV manufacturing through investment.
41 Articles
41 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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