Tesla to open business in India; officials to discuss EV investment plans

Tesla appears to be making progress on its India entry, with company executives expected to visit the country in April to discuss their strategy, government sources have indicated. The delegation will reportedly meet with officials from the Prime Minister’s Office (PMO) and key ministries to deliberate on investment plans, factory locations, and government policies related to electric vehicle (EV) manufacturing.

Also Read: Tesla begins hiring in India, signaling market entry plans

The US-based automaker has shown strong interest in establishing a manufacturing hub in India, with potential investments ranging between $3 billion and $5 billion. Tesla is currently evaluating locations in Maharashtra and Gujarat as possible sites for its factory.

The visit comes in the wake of India's newly introduced EV policy, which offers import duty concessions to global EV makers that commit to local production. Under the scheme, companies investing a minimum of $500 million in manufacturing plants can import up to 8,000 EVs annually at a reduced 15% duty. However, at least 50% of the pledged investment must be made within three years, and production must begin within five years to retain these benefits.

Tesla’s entry into India has been long anticipated, with previous negotiations facing hurdles over import duties. With the new policy framework in place, Tesla’s upcoming discussions could pave the way for its long-awaited presence in the Indian market.