Tesla targets April launch in India, may invest $3-5 billion: Government sources

Mangalore Today News Network

New Delhi, February 19, 2025: US electric carmaker Tesla seems to be moving ahead with its plans to enter India as company officials are expected to visit the country in April to discuss their strategy, according to government sources.

During their visit, Tesla executives will hold meetings with officials from the Prime Minister’s Office (PMO) and other key ministries. The discussions are expected to focus on Tesla’s investment plans, potential factory locations, and government policies related to electric vehicle (EV) manufacturing in India.

Tesla has shown interest in setting up a manufacturing hub in India, and sources indicate that the company may invest between $3 billion and $5 billion initially.

The government recently introduced a new EV policy that provides import duty concessions for companies that commit to local manufacturing. Under this policy, foreign EV makers, including Tesla, must apply under the scheme to receive duty benefits.

As per the policy, companies investing a minimum of $500 million in setting up manufacturing plants in India will be allowed to import up to 8,000 EVs annually at a reduced duty of 15%. However, companies must ensure that at least 50% of the investment is made within three years, and production must begin within the next five years to continue enjoying these benefits.

Tesla is exploring different states in India to set up its factory. Sources suggest that the company has shortlisted locations in Maharashtra and Gujarat as preferred destinations.

Maharashtra: The Chakan industrial area in Pune and Chhatrapati Sambhaji Nagar (Aurangabad) are among the top choices. These locations are known for their strong automotive ecosystem, with several global carmakers already operating there.

Gujarat: The state has been attracting major investments from automobile and battery manufacturers, making it another strong contender for Tesla’s factory.

Tesla coming to India has been the talk of the town ever since the US carmaker posted jobs on LinkedIn for Mumbai and Delhi locations.

The company posted 13 job openings on its LinkedIn page, covering both customer-facing and back-end roles.

The hiring move comes shortly after Tesla CEO Elon Musk met with Prime Minister Narendra Modi during his visit to the United States.