Tesla has shown a reluctance to engage in local electric vehicle manufacturing in India, despite favorable government incentives.
India's Electric Vehicle Support Policy
India introduced its electric vehicle policy in March 2024, aimed at attracting major global automakers like Tesla. However, Heavy Industries Minister HD Kumaraswamy noted that Tesla is not showing interest in local manufacturing.
Reasons Behind Tesla's Reluctance
Tesla's refusal to commit to local manufacturing may stem from high import tariffs and the insistence on local production. CEO Elon Musk has previously expressed dissatisfaction with these conditions, leading to a halt in investment plans in India. Instead, Tesla has focused on opening showrooms in major cities to sell imported vehicles.
Competition in the Indian EV Market
Tata Motors dominates the Indian electric vehicle market, accounting for only 2.5% of total sales in 2024. The Indian government aims to increase this figure to 30% by 2030. Other automakers like Mercedes-Benz and Hyundai have shown interest in local manufacturing policies, while Tesla continues its deliberations.
Tesla is currently hesitant about local EV manufacturing in India, while other companies are evaluating investment opportunities.
