Tesla, led by Elon Musk, is poised to make its Indian debut in July in Mumbai, starting with the sale of the Model Y SUV. The electric vehicles will be directly imported from Shanghai, China. The company has remained tight-lipped about setting up a local manufacturing plant in India, with Union Minister for Heavy Industries and Steel, H D Kumaraswamy, stating that Tesla is currently only interested in selling their cars in India and has no immediate plans for local production.
The Indian government’s scheme, announced by Kumaraswamy at the launch of a portal for foreign EV manufacturers, aims to boost local EV production and attract global investments. The scheme allows approved manufacturers to import electric vehicles with a minimum CIF value of $35,000 at a reduced customs duty of 15% for five years post-approval. In return, applicants must commit to a minimum investment of Rs 4,150 crore.
The application portal for the EV scheme is open from June 24, 2025, to October 21, 2025. This initiative is part of the ‘Make-in-India’ vision, aiming to create a supportive policy environment for top global and domestic players to establish long-term manufacturing operations in the country.
Tesla’s entry into India with imported EVs marks the beginning of its operations in the country. The company’s plans regarding local manufacturing will be crucial in determining its long-term presence in India’s growing electric vehicle market.
