India is closing in on an agreement with Tesla Inc. that would allow the U.S. automaker to ship its electric cars to the country from next year and set up a factory within two years, according to officials in the Indian government. An announcement to this effect may be made at the Vibrant Gujarat Global Summit in January 2024.
Tesla is expected to commit to an initial minimum investment in any plant of about $2 billion, and look to increase purchases of auto parts from the nation to as much as $15 billion. The company will seek to make some batteries in India to bring down costs, the official said.
No final decision has been made and the plans might yet change. However, Tesla CEO Elon Musk said in June that Tesla plans to make a “significant investment” in India and that he intends to visit in 2024.
Piyush Goyal, India’s Minister for Commerce and Industry. who visited Tesla’s plant in Fremont, California earlier this month, said in September that Tesla is planning to almost double purchases of auto parts from India to $1.9 billion this year.
Tesla and India, which is the world’s third-largest automobile market, reopened dialogue in May following a year-long impasse. Musk has criticized India’s high import taxes and its EV policies, and India, in turn, has advised Tesla not to sell cars in the country that have been made in China.
India is now said to be considering lowering import taxes for international EV manufacturers for five years if those firms eventually commit to setting up local factories.
Last updated: December 26th, 2025
