February 19, 2025: Tesla, the US-based electric vehicle (EV) giant, is reportedly advancing its plans to enter the Indian market, with company officials expected to visit the country in April, according to government sources.

During their visit, Tesla executives will engage in discussions with key officials from the Prime Minister’s Office (PMO) and other ministries. The agenda will revolve around investment plans, factory locations, and the government’s EV manufacturing policies.

Sources indicate that Tesla is considering an initial investment of $3 billion to $5 billion to establish a production hub in India. The move aligns with India’s recent policy changes, which offer import duty concessions to EV manufacturers committed to local production.

Under the new EV policy, foreign automakers investing a minimum of $500 million in setting up a manufacturing facility will be eligible to import up to 8,000 EVs annually at a reduced duty of 15%. However, they must invest at least 50% of the committed amount within three years and commence production within five years to continue availing the benefits.

Tesla is currently evaluating different states for its proposed facility, with Maharashtra and Gujarat emerging as the frontrunners. If finalized, this would mark a significant step in India’s push toward EV adoption and local manufacturing, while strengthening Tesla’s presence in one of the world’s fastest-growing automobile markets.