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Tesla is not interested in producing electric vehicles in India.

Virgilio Machado by Virgilio Machado
June 2, 2025
in Sustainable Mobility
Reading Time: 2 mins read
0
Fábrica da Tesla na Alemanha ainda não retomou a produção

Tesla is not interested in producing electric cars in India, with Elon Musk’s company only revealing interest in importing vehicles to the Indian market.

The revelation was made by India’s Minister of Industry, HD Kumaraswamy, to reporters this Monday, at a time when the Indian government is finalizing its electric vehicle strategy for the country.

India wants to significantly reduce import taxes for foreign automakers that commit to investing in electric vehicle production lines in India. This incentive policy for setting up factories was originally designed to attract Tesla to establish production units in the country; however, Tesla’s CEO, Elon Musk, suspended his investment plans in India at the end of last year.

The government of the world’s third-largest automotive market aims for foreign companies to be able to import a limited number of electric vehicles at a reduced rate of 15% compared to the current 70%, provided they agree to invest about $500 million, around €437 million, to build electric vehicles in the country. To do this, companies will need to establish production units in India and start operations within three years after approval.

According to the “Reuters”, electric vehicle sales in India are dominated by Tata Motors and accounted for only 2.5% of the total sales of 4.3 million cars in 2024. The Indian government aims to increase the percentage of electric vehicles to 30% by the end of the decade.

Tags: carros elétricosElon MuskHD KumaraswamyIndiaMinistro da Indústriamobilidade elétricamobilidade susntentávelProduçãoTesla
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