Tesla is moving forward with its entry into the Indian market, but it won’t be building electric cars in the country—at least not anytime soon. Instead, the company will concentrate on importing vehicles and opening showrooms in major urban centres, according to India’s Union Minister of Heavy Industries and Steel, H.D. Kumaraswamy.
Speaking at a press conference in New Delhi on Monday, Kumaraswamy confirmed that Tesla is not currently interested in local manufacturing under India’s new EV policy.
“They only want to start two showrooms. They are not interested in manufacturing in India,” he said. These showrooms are expected to open in the Bandra Kurla Complex in Mumbai and Aerocity in New Delhi.
The announcement comes as India officially launched its new electric vehicle (EV) manufacturing scheme, which mandates a minimum investment of ₹4,150 crore (C$666,000) and requires manufacturers to meet ‘Make in India’ thresholds—25% local production within three years, and 50% within five years—to qualify for incentives.
While Tesla reportedly participated in initial stakeholder consultations, the company was absent from subsequent meetings.
Tesla’s decision may also reflect international pressures. U.S. President Donald Trump has publicly stated that it would be “unfair” for American companies like Tesla to establish manufacturing plants in India as a way to sidestep U.S. import tariffs.
Despite this, Tesla has been quietly laying the groundwork for its India launch. The company signed a five-year lease for the Mumbai showroom in February 2025. Tesla has also advertised more than 25 local job openings and has begun testing the Model Y on Indian roads, including the recruitment of Autopilot test drivers.
