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Tesla Focuses on Showrooms, Skips Manufacturing in India
Union Minister for Heavy Industries, H.D. Kumaraswamy, announced on June 2, 2025, that Tesla is not expected to commence manufacturing operations in India in the near future. Instead, the electric vehicle (EV) giant is focusing on establishing showrooms to sell its imported vehicles.
Tesla India Plans
Despite India’s efforts to attract global EV manufacturers through favorable policies, Tesla has shown limited interest in setting up production facilities within the country. The company has finalized showroom spaces in Mumbai and Delhi and is in the process of hiring staff for these locations. However, there are no immediate plans for local manufacturing.
EV Manufacturing Policy
India’s new EV policy offers significant incentives to foreign automakers willing to invest in domestic production. The policy allows companies to import a limited number of electric cars at a reduced import duty of 15%, down from the current 70%, provided they invest at least $500 million in local manufacturing and commence operations within three years. Despite these incentives, Tesla has not committed to local production.
Kumaraswamy Statement
Minister Kumaraswamy emphasized that while Tesla is keen on establishing a market presence through showrooms, it is not interested in manufacturing vehicles in India at this time. He also noted that other global automakers, including Mercedes-Benz, Volkswagen, Skoda, Hyundai, and Kia, have expressed interest in setting up manufacturing units under the new policy.
The minister added that the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will open soon, allowing interested companies to formally apply and commit to local production.
Tesla’s decision to focus solely on imports may impact its pricing strategy in India due to high import duties, potentially making its vehicles less accessible to the average Indian consumer. Meanwhile, the Indian government continues to encourage local manufacturing to boost the EV sector and reduce reliance on imports.
