Tesla Prepares For Market Launch, Will Not Manufacture EV's In India, Says Heavy Industries Minister Kumaraswamy

Heavy Industries Minister HD Kumaraswamy said Electric vehicles in India will not be manufactured by Tesla in the near future. In Mumbai's Bandra-Kurla complex, a showroom was finalised. Tesla hired over two dozen personnel in India, including store managers and service staff. However, while Tesla is preparing for a market launch, local production is not part of its immediate plans.

India had introduced a flagship EV policy in March 2024 to attract major players like Tesla, offering reduced import duties in exchange for manufacturing commitments. Applications for the scheme are expected to open soon and remain active until March 15, 2026. Under the policy, companies can import up to 8,000 EVs annually at a significantly lowered duty of 15 per cent, provided they invest at least ₹4,150 crore (approximately $500 million) to establish local production within three years.

According to The Business Standard, however, the Indian government has recently tightened eligibility criteria under the scheme, introducing a minimum revenue requirement of ₹5,000 crore in the fourth year and ₹7,500 crore in the fifth. Companies failing to meet these targets may face penalties of up to 3 per cent on the revenue shortfall.

The policy aims to position India, the world’s third-largest car market, as a key destination for EV investments.

According to the Business Standard, Tesla suffered its first annual delivery decline in over a decade. In 2025, the company recorded a 13 per cent drop in global vehicle deliveries and a 71 per cent plunge in net profit.

The company has begun the process of certification and homologation to sell its EVs in India and is expected to roll out its first car in the market within the next two to three months.