New Delhi: Tesla fans in India might have to wait longer for Made-in-India Teslas. According to Heavy Industries Minister H.D. Kumaraswamy, Tesla has no plans right now to start manufacturing electric vehicles (EVs) in India. Instead, the company may just open a few fancy showrooms and sell imported cars from outside.
This update comes at a time when many other global car companies like Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia are showing serious interest in making EVs in India. They’re gearing up for a new government plan called SPMEPCI (Scheme to Promote Manufacturing of Electric Passenger Cars in India). Under this scheme, if a company invests about $486 million (around ₹4,000 crore) in local EV production, they’ll get a big reward, lower import duty of 15% instead of the usual 70%. That’s a huge saving!
So why isn’t Tesla jumping in?
One major reason is India’s high import taxes. Elon Musk has often complained that it’s way too expensive to bring Tesla cars here because of these duties. Even the cheapest Tesla, the Model 3, costs around ₹37 lakh in the US. Add Indian import taxes, and it gets way out of budget for most Indians. Most people here look for cars under ₹20 lakh, so Tesla’s current prices just don’t match with what buyers want.
Right now, Tesla is busy hiring people and planning to open showrooms in India, which is exciting. But they haven’t confirmed any factory or local production plans yet.
Another problem is pricing. Tesla wants to compete in India’s premium EV market, but even in that space, buyers expect more value for money. Experts like Rajeev Chaba (CEO emeritus of JSW MG Motor India) say Tesla’s high prices might limit its success here.
There were hopes that Tesla would launch a budget-friendly model (called Model 2), expected to cost around $24,000 (approx. ₹20 lakh). But now there are rumors that instead of a new car, Tesla might just make a cheaper version of the Model Y. So, it’s still unclear when or if we’ll see a truly affordable Tesla.
Meanwhile, India’s EV market is growing fast. In 2020, just 5,000 electric cars were sold. But by 2024, that number jumped to over 1.13 lakh! Still, EVs are just about 3% of all cars sold, which shows there’s huge room to grow. But for that to happen, cars need to be more affordable and have better after-sales service, something Tesla hasn’t figured out yet for India.
India is ready for EVs, but not at sky-high prices. If Tesla really wants to be a game-changer here, they need to think local, build here, price better, and offer strong service support. Until then, companies like Hyundai and MG might steal the EV spotlight in India.
